How do i set up a password protected network drive

I need to make a network driver secured with a password.
The network looks like this:
One computer running windows XP has a payroll database which is shared with 3 other workstations also on XP through a switch. These computers are apart of a larger network and i dont want any other users to be able to access the network drive.

How do i set a password for the network drive? I also need the computer with the database to be able to have full access to the other three but i dont want them to have access to more then a few files on the one sharing the database. In other words, the "host" needs full access to the clients files but the clients only needs to have access to one or maybe two files on the host. If this is not clear enough please let me know and ill try to explain in more detail.

Thanks!
hamdemicAsked:
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JohnmenZCommented:
If you are on a domain, access control can be done on domain accounts.  If computers are all in workgroup, then each computer that shares folders to others will need to setup an account for others to login when they are getting access to the shared folders.

This Microsoft kb article tells you how to share data on a Windows XP computer:
http://support.microsoft.com/kb/304040

In short, to meet your goals:
Goal 1: only share limited data from the payroll computer
To do: put all shared folders and file into a single folder, share the folder out, this way only the data in that folder are accessible from network

Goal 2: full access to other three computer from payroll computer
To do: from the other three computer, share whatever you want payroll computer to access.  If you want to share the whole drive, you can just do it but not recommended by Microsoft.
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theras2000Commented:
Instructions if you're on a workgroup:
1. Share the folder where the database lives.  Share permissions (on the Properties, Sharing, Permissions tab) can just be full access for 'Everyone'.
2. Setup local user accounts (with matching passwods) on the host that match the user accounts that the clientss will use.  Or create a single user account (with matching passwords) on the host and clients, and tell them that they must use this user account if they want database access.  Either way, the account/s on the host should not be part of the administrators group.
3. Setup NTFS permissions (on the Properties, Security tab) to allow only those specific user accounts that we mentioned in step 2.
4. Double-check that you have no other folders shared on the host, and that no extra users are granted access to the database shared folder.
5. Decide which user account you will use most often whe operating the host.  Create a matching user account (with same password) on each of the clients, and add them to their local administrator groups.  You may have already done this on the 2nd part of step 2.

If you're on a domain instead, then it is almost the same, except you may want to alter this to use domain accounts, instead of local accounts.  I this case, you won't need to create the new accounts and passwords, but just set the appropriate permissions on the folders.  Ensure that no client users are administrators on the host, and ensure that the user you'll be using on the host has local administrators access on the clients.
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hamdemicAuthor Commented:
Thanks for the quick respons, I wont have time to implement these changes today. But ill get back to you as soon as i've tested this. I really like the detailed step by step answers.

Btw im not on a domain.
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