Desktop finds no files

[scubaeverywhere]

I have just installed Google Desktop on a W2K Server. I have excluded all drives on the system at the drive level, and included on small folder on one of those drives(so yes the drive is excluded but a subfolder is included...I assume this is ok).
That folder Has 7 subfolders...between then they have 18 files, and there are 12 files in the root of the top level folder entered into the included list. A total of 30 files.
the index status currently reports 185 files indexed. When I excluded the last of the drives(I assume it indexed some files before I stopped it) it was in the range of 110-120 files. When I told it to reindex after including the folder I want to use it went from 120->185 despite that entire folder having only 30 files in it(and 38 if we include the folders themselves).
In addition when I do a search I cannot get any files in the results even if I search for the letter "a".
I have to believe this is something fairly simple I am doing wrong...is it obvious to anyone?

David