the smartware backup is a hidden folder. You don't just navigtate to it using network discovery or mapping, and you can't get to it from the dashboard.
1st time booting up MBL: no smartware hidden folders, no user-created folders. Just default movie, music, etc folders.
When you run smartware, the first backup will take a while. It backs up what you told it to to the hidden folders.
When you modify or update a file it will create a backup (and keep old versions if you opted for that).
You don't have to do anything.
If you want to create folders on the MBL to have access from different computers, or for media streaming, etc, you can create those and map to them or manage them from the dashboard. If you want a third-party software installed on your computer to sync with or backup to these user-create folders then give it a whirl. It has nothing to do with smartware.