Sharing with Windows 7 and Vista

It was originally. I've sinced changed it to enable sharing at 40 or 56 bit encryption but that hasn't made any difference either.

Suspected as much. Thanks for your help. May just upgrade Vista to W7 to clear the problem. Hassle I didn't want but may not have the option. Thanks agin.

gfriend, why not use the "right" way of sharing between NT clients (Windows Vista and 7 IS an NT client). If you want, I can guide you, but it'll be long and somewhat challenging...

Ok, first of all, NT systems are built for office use, security comes in mind when you work in office environment.
Windows Vista is built from Windows Server 2003 code base, so the basic security requirement for Windows Vista is more or less the same as a Windows Server (plus vista introduced a new dual token security model).

Here's what you can try.
1. You need to change your mindset of sharing the whole volume to your network, for one it's not safe, two.. it's full of problems (now you bumped on one of them).
2. Turn on the "Password protected sharing", it's way better that way (much more predictable).
3. Go to user account management, create a password for your account.
4. Create a folder that will become the "container" of your share... say you make a folder in the desktop, name it "Share".
5. Make sure that File and Printer sharing is enabled and is not blocked by the firewall.

Now the road splits into 2 routes, both will accomplish the same thing:
1st route, the easy one (Windows 7 or Vista style):

Right click the folder, press the "Share" button, share it as your user. Windows will then handle the rest (setting ACLs, turning on sharing, publishing it to the SMB service, etc).

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2nd route, the challenging/hardcore way:

1. Right click the folder, press the "Advanced Sharing" button, After the UAC confirmation, it should show you a small dialog about "Share this folder" checkbox.
2. Tick that checkbox, put down a "Share name", click the permission button, go check full control if you want to have FULL CONTROL of that folder's content, or just leave it just "Read" checked, you'd only be able to read the files, won't be able to make changes. Press OK.
3. Now I don't know your Vista edition, but IIRC, Vista edition that is lower than Business will not have a "Security" tab under file/folder property dialog. You need that "Security" tab just to make sure that everything is OK. If you don't have that tab... oh well... we can just resume...
4. Open computer management, go to "Shared Folders", expand the tree, click the "Shares". Make sure the share name you put in the Share dialog is on that list.

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Right, from the XP client, connect to your Vista computer by using IP address, example:
Assuming your Vista computer have 10.1.1.1 as it's IP address, you type ==> \\10.1.1.1
in XP's explorer address bar. When you do that, it should list the "Shares" that is enabled on the Vista computer (most of the share list you just saw in the "Shares" in Computer management should be there, some won't show because it's an "Administrative Share". Now access your share, it should ask you a username and a password, enter your username/password on the Vista machine to "login". From that on, you should be able to do whatever you want with the file within that Share point.

Phew... that was long...

zzz2496

OK. You all have left me. I didn't find any useful knowledgebase articles to step me through the process of allowing my 32 bit VISTA laptop to use a printer connected to my 64-bit win 7 laptop. I added the printer to the VISTA machine but it will not print. Rather than mess up all my settings, can someone provide a concise step-by-step setup? I can communicate with my G-router either by ehternet or wireless. In fact, as we use the laptops as virtual desktop machines in our office we usually leave the ethernet connceted to each. Thanks.

Follow this guide for sharing with Vista and Win 7.
Sharing files and printers with different versions of Windows - Help & How-to - Microsoft Windows

This one might also help.
Networking home computers running different versions of Windows