If a file's red, it means it's not being shared. To share it, right click on file & select 'Share File'. I think you might have to refresh your library to see the change.

If you want to make your shared & saved file locations the same, go to library > Saved Files > explore. This'll show you the location. Tools > options > sharing will show you the location of your shared files. Just change the location of one of them so the two are the same. 'Apply' to save changes