strange problem with "picture folder"

The other day my daughters asked how they could share their picture folders (xp home), I dragged my one daughters folder into the shared folder and strangely the other daughters folder disappeared. In the other folder both daughters pics are intact, but with only one daughters name. Where did the other folder go? I did a search and it's gone. I'm assuming that I can just rename the folder with both of their names, but I thought these folders were default.
Does anyone follow this? lol!

YOu might have merged both folders if they had the same name?

no, it seems they have indeed merged, but they both had different names and the folder that disappeared wasn't the folder I altered.