You're talking about two different things.
The Downloaded Files
window shows enclosures
Awasu has downloaded for you, which are like attachments for feed items, (typically podcasts).Download for offline reading
means that Awasu will download content for you so that you can still read it even when you're offline. There are two parts to this.
For pictures, you can turn this on in the Advanced
tab of the Program Options (Download embedded feed item images for reading offline
). Once this has been turned on, it will work transparently - if you're offline, Awasu will show pictures that are part of each feed item, instead of the usual "broken link" image.
Awasu can also download linked-to feed items - this can be turned for each individual channel in the Advanced
tab of the channel's Properties dialog (Download feed items for reading offline
). In this case, if you're offline and Awasu has already downloaded the content, a special icon
will appear next to the item's title, and if you click through to the web page, Awasu will show you the downloaded content, instead of complaining about not being able to connect to the server.