Hmm...Not sure. I Put my Shared Folder on the Desk Top a little different than what you did. I Didn't create a new Folder to Drag and Drop to.
I clicked explore while in LW. After the Shared Folder was open, I then Right Clicked on the Folder and then "Send To". Then clicked "Desktop" (shortcut). Doing it this way is exactly like seeing the files when Explore is clicked in LW. Now I never have to Open that Dreaded Program just to Listen to our Files.