Windows 7 access Windows XP

I am having issues trying to get two computers to share correctly. I have them both set up and they can both share files fine, but here is my issue. The pc with XP on it has multiple user accounts on it so I like to have my folder set to "private" so the other users on that pc cannot access it without putting in the my user password. If anyone tries to open the folder it stops them and asks for the password. Great, this is what I want on my XP computer. The only problem is that Windows XP seems to make this an all or nothing thing. If you set the folder to private as I have(so it prompts for the password to open it), you cannot share it on a network. If you set it to "Share", everyone on your pc can get access to the folder with no password. I'm going in circles.

My one simple task I am trying to accomplish is this. How do you network W7 and WXP so that when the W7 computer tries to open the shared folder in the XP computer, it asks for a password. That is it. I want to keep my XP machine folder private so it locks that folder and asks for a password each time to get in but I want W7 computer to access it too(and still ask for pw to get in). I cannot find out how to do this. Please help.

btw, I am not interested in third party folder locking software. Got royally screwed when my last hard drive crashed and found out too late that nothing in the locked folder(My Lockbox software) was backed up b/c it was hidden. Lost it all. Even after the fact I can find no software documentation or warning about this potentially happening using it. Done using any of them!

Thanks. I am running into one issue with the instructions though. It refers to going into the "permissions" tab of the folder and adding "guest" and adjusting the permissions level but in XP it does not have a persmissions tab on the folders properties box. Is folder permissions located somewhere else in XP?

Thanks again

One other thing, I went into WXP help and it says there is supposed to be a "security" tab in the folders property box but there is no such tab. The only tabs I have are "general", "sharing", and "customize"

I found it. Have to turn off "simple file sharing" in order to see the "security" tab. Giving this a try. Crossing my fingers