Windows 7: Problem sharing files between 2 windows 7 computers?

I have a windows 7 desktop computer that I am trying to setup to share folders with a windows 7 laptop. On the desktop computer I am able to share any folder, apart from those on the desktop (if I try and share these I get: “you do not have permission to access”). On the laptop the only place I am able to share folders is in C:\Users directory. If I try and share folders from any other location I get: “you do not have permission to access” I can’t understand this as I have setup folders share preferences to share with “Everyone” and have enabled full control with change , and read. I have disabled windows firewall and have no programs interfering with this. I have also disabled password requirements.
Does anyone know how I can enable my laptop to share any folder and not just those in C:\Users directory?

First, enable the firewall. That's not causing the problem. Now, are you using a homegroup or are you using a workgroup?

I am using a homegroup

this may give a little insight
How do I make Windows 7 HomeGroup content accessible to Vista and XP? | Microsoft Windows | TechRepublic.com

it has nothing to do with XP, as i said I still have problems between 2 windows 7 machines.

Do your users have passwords? If not there's a modification that needs to be done to the local security policy. Let me know if you don't use passwords.

Click your windows button on the keyboard and type "file sharing" - the first entry that pops up should be "Manage advanced sharing settings". Click on it, then verify the following settings:

Under Home or Work (current profile)...
Network discovery: on
File and printer sharing: on
Public folder sharing: on
File sharing connections: 128 bit
Password protected sharing: on
HomeGroup connections: Use user accounts and passwords to connect

Both computers should have the same file sharing settings.

Personally I don't use HomeGroup. I prefer using a workgroup instead because I feel I have more control over the sharing process. You might want to try using a workgroup instead. I also recommend creating identical users/passwords on each computer. That way you can add a specific user to a share and not have to worry about connecting - the account already exists on the target computer. Plus, it's a lot more like using a domain controller/logon server than it is using a workgroup (when it comes to file/printer access based on a user profile).

Now, where are the files being shared? Files can't be shared when they are in a person's profile directory (ie: My Documents).