That's right, the incoming are only searches that have linked onto one of your shared files for some reason. It might not be totally what they were looking for but it's shown up in the other person's search results.
There's ultrapeers & leafs. Ultrapeers will see all traffic which includes their own & some that are leafs connected via them. Whereas leafs only see what traffic is directed specifically at them. ie: UP's help shield leafs from unnecessary traffic.
For descriptions, see these links
http://www.gnutellaforums.com/showth...d+ultrapeer%2A & also this one
http://www.gnutellaforums.com/showth...d+ultrapeer%2A
Direct Connect is not an easy tool to use. Both you & the other person must have their firewalls properly configured, have free upload & downld slots & bandwidth. I suspect those with chat enabled might also be easier to DC to.