Does File Sharing need to be checked?
 

Do I have to have file sharing enabled in order for people to access my files within Xolox?

File sharing can be accessed from the "Network" icon in the control panel, or by right clicking on "My Network Places" and clicking the "File and Print Sharing" button. It is a high security risk to leave this on 24 hrs.

No - that would allow anyone to come in and grab your stuff. You dont want to do that. Xolox (and any other gnutella client) automatically shares all the directories you define as shared. Make sure its not your entire disk but just the directories you actually WANT to share.