Is Windows file sharing encrypted?

When using Windows file sharing, say WinXP or Win2k or even Vista, is the authentication method with Windows encrypted?  Or in other words, is someone able to possibly steal my username/password because it's in plain text?
Who is Participating?
In a peer to peer network (No active directory) NTLM is used which is encrypted within a domain Kerberos is used also encrypted.  Note only the authentication is encrypted not the data transfers them selves.

Folder shares don't have Username or Passwords
When you connect to a computer with a Shared Folder, basically you connect to the Windows Computer first than the Folder, if you are prompted for a username and password, it nevers sends this via plain text rather it uses NTLM authentication or Kerberos authentication depending on your organisation setup.

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