win7 libraries

yes i know it is a win7 problem but how do i find files via blender.
i was looking for a picture, i clicked load
it went to C:\users/username\documents/mypictures - which was empty cos of win7 stupid libraries.
the picture is supposed to be in
C:\users\username\mypictures so i tried to key that in and it said do i want to make a new folder.
i suspect neither i nor blender 2.49a understand the stupid win7 library system.
suggestions welcome!