Homegroup is a new concept introduced in Windows 7 that makes sharing music, photos, videos, files and printers with other people on your home network easy and intuitive. You can now create a password protected home network in very few clicks without going through the hassle of setting up a network and fiddling with network configuration. You can even make your files ‘read only’ so that other people can access your content, but not change it. It's only available in Home Premium, Professional, and Ultimate variants of Windows 7.
If you remember what a headache it was to set up file and printer sharing in earlier versions of Windows, you’ll be amazed at the difference a homegroup makes. During the process of setting up or joining a homegroup, you can choose the libraries and printers you want to share, and you are done. Even creating a homegroup is as easy as running a wizard.