STRM File Questions and Blu-ray

I’m totally new at this and have a few questions. I hope you don’t mind answering.

First off can .strm files be used with blu-rays that are ripped to folder structure and not iso?
Also how do I create the strm file and where do I put them?

For ex I have on my NAS
Farscape
Season 1
Disk 1
Disk 2
Season 2
Disk 1
Disk 2

Do I create a folder on my NAS called TV Shows, then create a folder for Farscape and dump in the stream strm files in there? Would I have one stream file for each episode on disk? Then point my Video Library for TV Shows to the folder that contains the strm files? Will the show and episodes then show under TV Shows?

Lastly, an someone point me to an example of a .strm file for a blu ray?

Any assistance would be greatly appreciated!