Yup. It just shows whatever folders are shared.
I had to buy a new router to get the sharing to work, though. My decrepit 802.11b router just wouldn't cut it. I'm pretty surprised how short the listing of routers that are officially Xbox compatible is. I ended up getting the Gamerlounge one from Dlink. It's pretty awesome. My ping actually went down using that, so now I'm better at Gears of War. Stupid peer-to-peer hosting system.