Hey brainscan,
A couple of things - what OS specifically are you running on the machine? Windows 7 Professional, Home Basic/Premium, etc? I appreciate it won't be solely an OS-compatibility thing as it previously worked, but good to know for further troubleshooting steps.
Also, can you confirm the nature of the LAN. What other machines are on this network? What OS' are they running? What sort of environment is it - home, office?
What are you specifically not able to connect to - certain folders? A printer hosted on one of the other machines?
The timing sounds like there may have been a change to the config as of yesterday - most likely causes are a Windows update has caused a change to the administrative privileges on the machine, or a change in the LAN-related settings (sharing settings in particular).