Am I using the queue properly

I tried using navigation settings set to QUEUE instead of DIRECT.

The files showe up in the queue and I pressed the start button.
It uploaded the files but they did not show up in the explorer window.

I switced back to direct and tried it again.
It asked if I wanted to replace them, so apparently they were there.

Is that the way its supposed to work.

using winxp/pro

If you mean with "Explorer" window the Remote Browser try to refresh it.