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Are they both running the same version of xp or is one home and the other pro?
There are some issues between xp home and pro with file sharing. I've run into this several times in the past. The easiest way to do it if they are different is to run the setup wizard from the pro computer and have it create a network setup disk. Run the setup disk on the other computer and it should correct any errors in the settings that are preventing it from working.
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