Hi gertie12
To find your downloads go to LW's menu Tools>Options>Saving & make sure this is where you set it to be. Go there. Have a look inside & see if your files are there. The only files that show in the LW library are the Shared folders, Incomplete folder & only if you have the new version LW there will also be a folder called Saved Files which show which files have completed dwnlding. To know which folders you're sharing go to Tools>Options>Sharing & this will list the folders you are sharing.
If you're receiving an error message that files cannot locate library, then it sounds like this option is incorrect. Check your Tools>Options>Saving option & if it's correct, try re-selecting that folder & clicking Apply & OK buttons. Your Saving folder (LW's Dwnld folder) & Incomplete folder must be at the same directory level. eg: C:\Documents and Settings\gertie12\Shared & both incomplete & Saving folder will/should be here. If you've chosen somewhere else that's fine but make sure both these LW folders are at the same level. It is not a good idea to change dwnld location if you still have incomplete files. If you do, you should quit LW & move ALL the files from the previous Incomplete folder (including downloads.dat & bak to the new incomplete folder. Otherwise LW might get confused!

As far as files in RED, search the forum for RED. When you 1st open up LW all incomplete & shared files will be red in the library whilst LW takes time to account for them all. But if they're still red after 30 mins then there's a problem with them.