You said:
If you have iTunes set to import directly from LW then you'll be getting duplicate files. One in the shared folder & one in iTunes. The Saved Files folder & the Shared folder are the same thing. Just that not everybody chooses to share their shared folder. So thus they can't access it
from the library window. So with the now default Saved Files folder, this folder is easily accessible. (The Saved Files folder is not shared to other people.)

I ask:
If I understood the first paragraph correctly, since I'm sharing my entire iTunes library, I don't need the Sharing/Saved folders? I can delete what is in them so I don't have duplicate files?

You said:
If you're refering to sharing your iTunes library with other LW users then simple. Just Go to LW'ls Prefs>Sharing & press the add button & direct it to the iTunes music folder. Select it & press apply. The other daap sharing is in regards to sharing on a lan.

I ask:
I finally found the "add" button...how deep do I go into iTunes to select which folder?