Many of you might have the problem sharing files and folders between Windows XP and Windows 7 OS. This is not so long tutorial but you can solve it just changing some values in your windows settings. By default Windows XP sets your Workgroup as MSHOME. While windows 7 feature WORKGROUP as your default workgroup you can easily get rid of this problem.
To connect Windows 7 OS with Windows XP, change the workgroup name of either one of the OS. I recommend you changing the workgroup name of Windows XP from MSHOME to WORKGROUP.
To change Workgroup in Windows XP, right click on my computer and click on properties.
In Computer name tab, check the workgroup. By default it is MSHOME. (In my case I named it WORKGROUP).
To change it, click on Change button.
A new window will pop up. There you can define your own workgroup name.
Now both of your OSes have same workgroup name.
Now in windows 7 PC, go to control panel > Network and Sharing Center.
At the left sidebar, click on Change advanced sharing settings.
In new window, Turn on Network discovery, File and printer sharing and Public folder sharing by clicking on the respective radio button.
Under File sharing connections, Click on Files sharing for devices that use 40- or 56- bit encryption. (Windows XP may not support 128 bit encryption) .
And turn of Password protected sharing.
Do the same for Public and Home or Network connection
Now you may run Home Network wizard (Control Panel>Setup Home Network) in windows XP. Then there you’ll have easy LAN connection. Make sure that workgroup name during wizard is setup to WORKGROUP not MSHOME
Now you can easily access files and folder and even internet and printers from network.
You can see the files in network.