jimbo, thanks for your input. And yeah, WS-FTP was great.
I don't think you're understanding what I'm doing fully though, allow me to give more detail.
I'm not going out over the internet. All of this is occuring on the LAN only.
I have 3 machines at the moment I'm using. Rather than having to get up and go to each machine, I use Remote Desktop to remote into 2 of them and use them that way. These 2 are also mounted on a rack without a keyboard or mouse and no chair.
For example, I have one computer I use for burning optical discs at the moment. I have a large collection of files I won't access regularly (if ever again), but I do wan to archive them. I'm doing so much burning, the drive actually heats up a bit from it. I have to pause about 3 to 5 minutes between discs with the drawer open to create effective cooling and prevent overheat that leads to failed burns. Since I'm using (abusing?) the burner so much, I'm trying to decrease the possibility of failed burns even more by having this computer do only burns. By using Remote Desktop, I can sit at my main computer and do all the UI stuff comfortably. It's a box sitting on a rack. Remote Desktop is great!
The other machine I'm using right now for Shareaza (peer to peer) stuff. I remote into it and do all the work I want with it. Since I'm usualyl transferring a lot of file, Shareaza tends to be very processor intensive. By having a dedicated machine, I don't have to worry about having my other work (like playing a first person shooter) being affected performace wise.
Now, what I was hoping to do was use Windows 7 Home Group to provide the credentials to remote into these computers rather than having to provide a user name and password stored locally on the other compuers. This isn't working though. From what I can tell, it's not so much a limitation of the Home Group but Remote Desktop. RD creates a login session on the other computer complete with everything that normally goes into a user login and interaction. In order to do this, I guess it needs an actual user space and not just ephemeral user. If that makes sense.
Edit: Digger, yeah different accounts on the main pc from the other 2 PCs. Not so much about security issues as an organizing thing. Rather than have half a dozen accounts on the remote machines for the various people in the house, I created a "generic" account for everyone to use. Basically it was my attempt at a type of home group system back in the XP days. Since the remote machines didn't need to maintain individual user settings and preferance but just provide security credentials, I just gave out the one user name and pass on the remote machines to everyone in the house. If they needed a file on the remote machines, they just entered that into Windows Explorer when prompted. It's carried over to the present.