You can of course use magnet links ... send a magnet link to a friend, they type it into their browser & their gnutella client opens & starts downloading the file. Then can browse host from your upload window, etc.
But both need to be using the gnutella client online at same time of course.
How to use Magnet Links & Direct Connect (LW 5 does not have direct connect except the GMail system within private sharing ... if only I knew how that works lol)
Sorry I was no help on the private sharing. There might be posts here somewhere which give some ideas about how it works.