I was quite surprised to see hidden files and folders when I used this item. The whole reason I hid them is so I don't have to see them when I do things like search my computer, or use items in a game. It is a good thing that no one was watching me play at the time or else that would have been a pretty awkward situation.
It should be simple to make it so that the item only detects unhidden files and folders.
http://windows.microsoft.com/en-us/windows7/what-is-a-hidden-file
Just move your directory out of My Pictures. That's easier. : P