Hi phenix -
Rest assured Windows is doing what you told it.
The IP shown for FreeStaffWorld is "localhost", that is, your computer. The good news is all that happened was WMP wasted a bit of your computer time.
I only have W2K, didn't know WMP has a network sharing service -- it must be in WMP10+. Anyway, what siria said is good: at the very least set it to "Manual", but disabling it can't hurt. If disabling it does give problems, you can always reset to manual.
Gigabyte H61M-USB3-B3 r2.0, I5-2400 3.10GHz, 4GB RAM; W7HPx64 SP1, Lotus SmartSuite 9.8, K-Meleon 76RC, IE11, Clyton email 15.0, Foxit Reader 220.127.116.116, PaintShop Pro 6.02, Avast! 12.3.2280, SuRun 18.104.22.168, VoodooShield 3.59b
"Learning is not compulsory. Neither is survival." Dr. W. Edwards Deming.