I hope this is the proper place to reply, please forgive if not...
I tryed to delete LW preferences and then re-add shared folders via tools.. not sure if it worked because everything looks exactly the same as it did before. I went to link to update and strated the download however after 3 hours and only under 20% done, I figured that couldnt be right so i cancelled the download.

I have version 4.8.1 and yes I do have a subfolder in library called saved files and I also have a subfolder called shared files. If I am downloading music, and a song completes it goes into my library into both the folders. It also shows at main page at the bottom how many files I am sharing. When i reboot my PC and open LW...my incomplete downloads are still there but it says sharing 0 files and when i go to library my saved and shared folders are blank.. although it still shows my incomplete downloads. Also... I didnt mention this before but none of the music goes into my "my music" folder so each time a song is completed I do a search and drag it to "my music" so I can access the files via NERO5. (I tryed to access LW thru NERO5 without having to copy to "my music" however although I could get to LW there were no files to drag to copy to my CDs)
I could sent screen shots of what I am seeing if that would help you help me