Do this test: Bug Report instructions & sample image Is the result True/False?

If it's true then that's fine. If it's false, then you do have some kind of firewall issue.

Did you configure your firewall so it allows LW full access (advisable not to have 2 active firewalls b/c they can interfere with each other); Firewall configuration instructions (click on link)

Normally you can't search your own files. (However apparently some people are able to but this is not normal.)

To see if files have been seen or uploaded, go to LW's Library window, click on your folder you're sharing. Then look at the columns to the right of the files. Uploads & Hits columns. Hits tells you that people have found your files in searches. Uploads represents either attempts or successful uploads of those files. Some of those might be partial uploads.