OK, thanks JCC -- then I don't have the LocalFS package installed correctly. The "LocalFS portal" is not something I saw, just that I thought I should see something in "Add" list - and now I know it should say "Local File System".
On my /Control Panel/Products page in Zope I see a bunch of products that are installed and they each have a little "package" icon next to the checkbox - all package icons are of closed packages, but the LocalFS package icon is different - icon of an unwrapped, open package. Is there a step I missed during installation?
Enter the product. Probably, you see a "Traceback" tab. If so, it tells you why the installation failed.
Even better: activate Zope logging (--> doc/LOGGING.txt), restart Zope and look in the log file.
There are three icons for Products. A closed box, an open box, and a broken box. Closed boxes are for installed filesystem products, open boxes for ZClass products (which you can edit TTW, which is why it's open), and broken boxes for broken products. If it's a broken product, you can check out why, as Dieter suggested. If it is indeed an open box, I'm guessing you used the "Add Product" button. This is used to create ZClass-based products, not to install filesystem products like LocalFS (which will be recognized automatically.) Perhaps it's interfering with the real LocalFS. Remove it, restart Zope, and check back. --jcc