Looks like it is working as intended to me - the indexes are working.
If you don't want to see only files and directories then you need an index.html or an index.php etc for your web site in your htdocs directory to replace the one you moved to backups when you added your web site's files.
Http://localhost/ for your web site when you have added an index file.
http://localhost/backups/xampp/ for the XAMPP Welcome Page with demos and admin files.
BTW you have used the wrong link to your image at ImageShack - it is displaying a bloated thumbnail image- I had to go to the direct link to see your image:
http://img266.imageshack.us/img266/2324/18607878tz9.jpg
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