Error Code 0-80070035 the network path was not found. PLEASE HELP!!

I have a lap-top and and a desktop that i am trying to share files between. They are both running windows 7 home premium and the laptop is 64bit and the desktop is 32bit. The desktop is able to access the lap-tops shared files but the lap-top cannot access the desktop however the desktop does show up on the network. When i try to access the desktop it just gives me an Error code 0-80070035 the network path was not found.

I did ping the desktop both with ip address and device name and they came back ok.

I have also tried turning off windows firewall to see if that was the problem and there was no change. Then i turned off the firewall on the router and still there was no change.

If anyone could help me it would be much appreciated!

If it helps any i am running Avast free anti-virus on both pc's

Sorry, i can not help you as I'm trying to fix this thing for several moths now myself.
The strange thing is that I can reach the other computer with remote desktop, while windows-explorer presents the 0x80070035 error.
So there is no structural thing wrong in the network itself, I guess.
I found a way to fix the problem by restoring a back-up of my registry. This only holds a day or two, then the problem pops up again. The fact that it reappears by itself even when no setting in firewalls or anything else have been made. makes it even harder to find the cause of this problem.
I searched the Internet for months now and can not find a solution.

So if anyone has a good suggestion, please help.
It is driving me crazy.

I have no answers either I'm afraid, just the same errors as firestormhawk completely. Funny thing is that until recently it used to be OK, so I am wondering if one of the MS updates is the cause.