I want to clarify the original post first. The thread is titled "Internet Sharing" but if I understand the original post the Internet sharing is working fine. Its the file & folder sharing that is the issue. Right?

Asuming that is right, I second EaseZe's post. Make sure both computers are a part of the same workgroup.

WinXP data sharing is a little quirky IMO compared with NT / 2000. If you right-click on a drive and try to share it you first have to respond to a warning message against sharing the root of the drive. XP tries ot dummy-proof sharing and steer users to sharing specific folders rather than entire drives.

If you right-click on a folder or file to share it, you can choose between sharing it locally- only with other users of that same computer, or sharing over the network. To share locally you simply drag the files or folders you want to share into the Shared Documents folder. If you want to share with other computers on a network you have to check the box to enable it and assign the folder (or drive or file) a share name. Lastly, there is a checkbox for whether or not remote users should be allowed to alter files- basically a dummy-proof way of specifying whether the files should be read-only or not.

Check to make sure that you have properly shared the drives, folders or files that you are trying to access from each machine and doublecheck that they are part of the same workgroup.

Hope that helps-