I aint saying that you shouldn't fix it, but if you ever get fet up wit it, just set up a FTP and use that to share files. You know enought that your not going to allow outside access to it, so it shouldn't be a big issue at all.
if it was me I would first do what Tuna911 suggested and if it still didn't work, I would look at the local security settings of each comp (ctrl panel -> administrative tools -> Local Security Settings)
and look for anything that could cause your problem. I forget the exact layout for WinXP home, I know that it is very limited network wise from XP PRO but filesharing is a sure thing, I dont know why it just dont work from the getgo.
oh and if all else fails, try and enable the Guest account on your XP home box (i dont suggest you leave it enabled tho, just a troubleshooting tool)
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