It does exactly what I expected:
Dim strBd As New StringBuilder
strBd.Append("Start: ")
strBd.Append("<%ShowFiles()%>")
strBd.Append(" :End")
Console.WriteLine(strBd.ToString())
Gives me:
Start: <%ShowFiles()%> :End
It's a string: when you append otehr strings, it adds them into the string so far.
If that isn't what you wanted it to do, you need to either rethink what you are trying to do, or explain in much better detail exactly what you do expect it to do.