The 1200 shared files are the files that are in your library, if you delete them you will lose them..ie your music..They are the files that you are sharing back to the community, that's how p2p works, when you download music you are downloading from other people that are sharing their files...
I hope that makes sense...
I will give you this link, it will explain how to create a playlist and burn it to a cd using Windows Music Player....
http://www.gnutellaforums.com/tips-t...tml#post274205