hi Kathy
I'm not on XP, but until an expert shows, look for a menu item called something like "connections", and a file menu with a choice to "connect". You need to be connected in order to search, and once connected to a few hosts, the red light should turn green. Once you can search, the "awaiting" message will change once the same file is found. As for the "waiting" message, you don't have to do anything: that means the host machine is busy, and LW is waiting for the other machine to open a download slot for you.

Hope this helps you get started. Cheers