Windows 7 - Win 7 - XP issues

I have read a lot about the problems trying to get a network working between 7 & XP. I have tried most of the options - but it still does not work for me. If anyone can help, it will be greatly appreciated. Here is the problem...
I have a new laptop running 7 & an old laptop running XP SP2. Both connect to the internet via a wireless network (router). I tried to get a local network going between the 2 laptops. I am able to successfully connect, access & use the shared folder on the XP thru the 7 laptop. While trying to access the 7's shared folder(s) on the XP i am facing a problem. I pinged the 7 thru the XP and found that is is accessible. The problem is that i can get to the 7's workgroup name on the XP under 'Microsoft Windows Network' under the section 'Other Places' only. When i click on this icon, i get to the computer name of the 7. Once i click on this is where the problem lies - I get an error message saying that the computer is not accessible'. It appears to be permissions issue. It seems like the connection is happenning at the root of the 7 machine & since the connection is not happenning at the root\share, i'm getting this error. Can someone please guide me fix this problem? I've spent an entire day on this reading and trying to fix the issue, but with no success. Any help suggestions will be greatly appreciated!

Do you have these settings checked on the Windows 7 computer ?

The settings are exactly like that at the 'Users' share level which would be under the 'Computer Name' level.

On the Windows 7 computer, Do you have the folders you want to share, shared with everyone or a specific user or computer ?

By default, Windows XP signs in to other Windows PCs using the Guest account. ^.^
All you have to do is set a permission for your sharing folder (in both the sharing access and for the folder in Windows 7) for YourComputerName\Guest, and you're good to go! You can use special permissions here too.

Yes, i have the 'documents' folder under 'Libraries' with that option.

Hi LuzTeTT

I did not understand how to try what you have suggested, can you please explain in steps. BTW, i don't have a guest account in the 7 laptop.

It helps if it was running SP3 as it includes additional patches to make networking the two OS's much, much simpler

I think when you click share with: Guest is one of the default options.

I don't have Guest as an option as i don't have a guest account