Using password protected sharing.

Hello. I have problems configuring Windows 7 to share folders using password protected sharing while being accessed from Windows XP. I have tried many thing but failed. Either Windows XP users are recognized as "Everyone" or they don't have permission to access the Win 7 folder. They are never asked for password no matter what I select from "Advanced network sharing". I make additional password protected user and give permission to exactly this user but is it needed to change "userpasswords2" in Windows XP because a friend of mine said I have to change something in the Win XP system to be able to get asked about User and password while trying to access the shared folder?

Same problem is showed here but it doesn't seem to be resolved nor explained fully in the two suggested threads:
Xp password protected sharing with win 7
although the user tried adding his own user account but I tried adding another user account which appeared in "Share with" list as option.

This should help File sharing.pdf