I set up 2 drives called F & G on Win 2k using Virtual PC. I installed LW on drive F & set up my dwnld folder for G. My incomplete folder also ended up in G. So I'm guessing you may have more than one occurence of LW. There might be a copy you still have on C. Regardless, you must have an incomplete folder in the same folder as your Dwnld folder wherever it is. You may have gotten your folder name mixed up for your dwnld folder. Just a guess. Do a search for incomplete using your OS search engine after next time you set up your dwnld folder on drive D. Don't forget to press the APPLY button after any change like this!

I forgot to mention, there is no incomplete folder on C drive on my comp. Even after closing & re-opening LW. Everything is as it should be. So when you change your LW Dwnld Folder location: Tools>Options>Saving (make a note of the folder's name or even give it a unique name) & Press the Apply button. Make 'sure' you selected D drive. Double-check after you go out of options. Then go back into Tools...Saving to make sure the changes were recorded.