No networking between XP and Vista Ultimate

I am having trouble accessing files on my Vista computer via network connection from an XP Pro laptop.  The message I get when clicking the icon in My network Places is:

\\Desktop\Harddrive\ is not accessible.  You might not have permissions to use this resource.  Contact the administrator of this server to find out if you have access permissions.

Access is denied.

I have granted the Everyone group Full Access and still I can't get in.  In fact, I can't even see some of my network places.
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Are you both in same Workgroup?
are they in the same workgroup or domain
#1 Make sure both unit's are in either the same workgroup or domain.
#2 Make sure both units are using the same username and password
#3 if the usernames are different on the 2 machines, add an additional user account to the Vista machine with the same logon as the XP Pro.
#4 Make sure there is an exception for file sharing in the Windows Firewall, or aftermarket Firewall product.
#5 Try to connect manually to the VIsta box. Go to the start menu and choose Run. then put \\Vistabox\C$ and hit enter. Do you get any error messages this way?
#6 Make sure you are on the same network IP wise. Also check your subnet mask on both boxes to be sure they match.
#7 try to connect via IP \\192.168.1.x\C$ (if it works this way, then you have a naming issue.)
#8 to correct naming issue edit the hosts file in C:\windows\system32\drivers\etc
add a line like    somehost.somedomain.local or just somehost

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fritz5150 is giving you some good advice but there's one thing he's left out - the local security policy

control panel -> administrative tools
local security policy
   local policies
      Access this computer from the network
default entries SHOULD be
Administrators, ASPNET, Backup Operators, Everyone, Power Users, Users
You can add more entires but the Everyone should cover it

You should also check the IPC share itself and check from the Vista machine can it see it's own shares.

Recently I had a Vista machine that could ping the other system but couldn't see any of the shares, not even it's own.  It turned out to be a bad windows update.  A system restore fixed the problem.
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