yes you can. you set the network setting for each pc based on their OS
for 7,make you sure to..
-turn on printer and file sharing(set to others can read only)
-turn off password protected(do this only if another user is someone you trusted)
on XP
-go to control panel>network connection>setup home or office network
along the side you will be prompted to turn on printer and file sharing,turn on and you're finish
if you want to browse the file that you shared on windows seven. just go to my network connection and you'll see a list of pc that are connected to you
if you're connected through LAN, make sure to set IP adress different at the end of the numbers
example 101.10.1.20
the other pc IP should be 101.10.1.21 (you can use 50,40,64,just make sure the end number is the different) this is to avoid IP conflict
the DNS number should be 225.225.0.0
DNS number should be the same on all pc that you're connecting
hope this helps