Sounds like you changed your settings or something before or during the installation process. So now you're saved & shared folders are a little different to before. Files will downld to your Saved Files folder. Files in your Saved Files folder will be red if they're not being shared. Also files that have not fully loaded after opening LW will be red. During this time they cannot be played or launched, etc. Just wait.

You may need to re-add some folders to share or else press the Refresh button after the downld for the files to appear in your shared folder. Be patient for these to turn black.