Windows 7: how do i take this off

how do i remove this and just make it show folders of music

right click on the open space, and choose Group by - none. If you don't see the none option tell it to group by name first, then open it again and it will appear. Should straighten you out.

Drag what ever is in the public music location onto your desktop, then click on the folders tree music, it will list my music / public music/ and shared music,
Right click the public music listing and select remove location from library, repeat for the shared music listing on the folders tree,
After you do that left click the my music listing and drag the music folders in this window,
You can repeat this for all other library listings, documents, leave the my documents and all other my .....
It will now show one location for each listing even though you have two listing on the folders tree.