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 15.0, Foxit Reader 220.127.116.116, PaintShop Pro 6.02, ZAM Free 2.74, SuRun 18.104.22.168, VoodooShield 3.59b
"Learning is not compulsory. Neither is survival." Dr. W. Edwards Deming.