Boost Creates empty folders although

the .boost file and .htaccess files are created.
Hi i've just installed the boost module run on a localhost server ( lamp ) with win7 and g:\www
as the root folder . I've given permissions to the folder ( this is a localhost enviroment so i dont care much about the perms are 0777 to all ) .
The reason i'm posting this is because "boost" adviced me to do so :) ( see 2boost.jpg attchment ) .
The 1st images shows me that everything is ok and that boost should work properly but unfortunately it does not.
I've read a thread about the $base_path solution but i dont know how to implement this in a localhost enviroment.
I mean do i have to add a mydomain.com at hosts files and add a virtual host via apache?

p.s : thanx for your time and have a great 2011!