Where did the incomplete folder come from? If it was placed there during installation then that means you set the downld folder to the desktop. Which is not a good idea. Shortcuts to your downld folder are better. Else, just use the Explore button in LW Library window to open the Saved Files folder.

Your old incompletes should be fine. If you install over the top of your previous version (ie: the installer deletes it 1st.) Then your other folders will be safe so long as you didn't remove the files called download.dat & bak which are the LW downld preferences. Those are very important.

Yes uninstall & reinstall. (There is an uninstall option under the Start>Programs>LW menu.)

By the way, in your Tools>Options>Advanced>Firewalls, how do you have it set?