ok, so maybe this is a problem? when i try these steps:
The fix for this problem seems to be Deleting the file idstore.sst under C:\windows\serviceProfiles\LocalService\AppData\Roaming\PeerNetworking
Once everything at Peer Networking Grouping is running you may also need to do this...
Start the Task Manager
Click on the service Tab
Find the "HomeGroupProvider"
and then stop the service.
You will need to restart after doing this.
There is no AppData directory....within the LocalService directory on the path you listed are Desktop, Documents, Downloads, Favorites, Links, Music, Pictures, Saved Games and Videos... so I'm thinking that's a problem?