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The setup disk is only needed when networking an NTFS operating system such as XP with a FAT32 operating system such as Windows 98. Running the setup disk on the FAT32 system allows FAT32 to "see" the NTFS system's files.
After running the Network Setup Wizard you need to mark files, folders or, if you prefer, the entire drive as "shared."
XP's Help and Support on the Start Menu has good information on how to do that as well as how to set up a home network such as yours.
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