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, Pale Moon 26.4.1, IE11, Clyton email 17.0, Foxit Reader 188.8.131.526, PaintShop Pro 6.02, SuRun 184.108.40.206, VoodooShield 14.8
Television is the first truly democratic culture -- the first culture available to everyone and entirely governed by what the people want. The most terrifying thing is what people do want. [Clive Barnes, 1969]