Networking Windows 7 & XP

Okay, here's my problem. I have a desktop running win XP home sp3 with McAfee security suite (my mom's, so I can't change software, but changing settings is okay) that is wired to my Belkin router. I'm trying to wirelessly network to my laptop running win 7 home premium with windows security suite. The win 7 machine is set to home network (I've also tried work network), both machines have the same workgroup, I used the same security key on both 'puters when I set up the network (using the CD that came with the router). Here's where I'm at: the laptop will show the desktop on the network map, but nothing appears in win explorer when I click on the network folder. The desktop sees the laptop, but I get an error message about permission not set when I try to access it. I've shared folders on both machines (and turned on file sharing in win 7), turning off simple file sharing has no effect, neither machine requires a password and I'm at my wit's end. What am I missing?

First let me know exactly what error you are getting while trying to access file on the same. I will advise you to go with the below given step to diagnose and repair the problem that you are going through.

To troubleshoot a network connection problem, try these steps first:

• Open Network Diagnostics by right-clicking the network icon in the notification area, and then clicking Diagnose and repair.
• Make sure that all cables are properly connected.
• If you're trying to connect to another computer, make sure that computer is on and that you have enabled file and printer sharing on your network. For more information, see Networking home computers running different versions of Windows.
• If the problem began after you installed new software, check your connection settings to see if they have been changed.

To check connection settings

• Open Network Connections by clicking the Start button Picture of the Start button, clicking Control Panel, clicking Network and Internet, clicking Network and Sharing Center, and then clicking Manage network connections.
• Right-click the connection, and then click Properties. Administrator permission required If you are prompted for an administrator password or confirmation, type the password or provide confirmation.
• Test your router to see whether it is fully compatible with Windows Vista by running the Internet Connectivity Evaluation Tool.

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Thanks. I've done all that already. I'm not getting an error, I'm just not seeing either computer's files from the other computer, although I made it as far as being able to see the computer's themselves (I could see the XP system from the win 7 laptop, and I could see the Win 7 laptop from the XP desktop, just no files). I enabled file and printer sharing and designated "My Documents" on both systems to be shared.

Now I'm having worse problems. My win 7 laptop completely crashed. I keep getting stuck in a reboot loop (Bios screen, then black, then BIOS screen, then black ad infinitum). I tried system restore to no avail and apparently I was to create my own "recovery disk," but nothing in the documentation prompted me to do so, so I'm getting ready to order one from HP (it's a compaq laptop).