The basic usage (for symbolic links) is: ln -s <original> <new_link>
or to give a real-world example: ln -s /usr/src/linux-2.6.6-mm1 /usr/src/linux
to create a link in /usr/src called "linux" and pointing to the /usr/src/linux-2.6.6-mm1 directory.
Also, if you want to make a quick link with the same name as the original file or directory in your current working directory you could just type ln -s <target>
The most probable cause in your case is that you simply created the link wrong. Did you test it in the console? Type ls -l <link>
to see where a link points to. Example:
hw@baron:~$ cd /usr/src
hw@baron:/usr/src$ ls -l linux
lrwxrwxrwx 1 root root 23 Jun 2 20:51 linux -> linux-2.6.6-mm1/
Note the "linux -> bleh" which shows what the "linux" symbolix link points to, in this case to linux-2.6.6-mm1 in the same directory.