Windows 7 ask for login credentials on Server 2008R2. XP client's connect OK

Have a new Windows 7 Professional (32 bit) PC trying to connect to Windows 2008R2 Server (not AD). When I dbl click on server name, I get asked for user name & PW. Windows XP PC's don't ask for this. I've gone to sharing options on this PC and turned off password protected sharing for home and public profile. I've turned off firewall on the server just to check.

All PC's are on the "Workgroup" work group. I've disjoined the workgroup and rejoined it and still asks for user name and password.
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penguinjasConnect With a Mentor Commented:
Browse to "Local Policies" -> "Security Options".  Now look for the entry "Network Security: LAN Manager authentication level" and open it.  Click on the dropdown menu and select "Send LM & NTLM - use NTLMv2 session security if negotiated".  Apply the settings.

In the Advanced sharing settings page of Network and sharing center, you need to have it set as Work/Home profile.  Try

-Enable network discovery
-Turn on  file and print sharing
-Turn off password protected sharing
-Use user accounts and passwords to connect to other computers

The other settings such as encryption I have set as use 128 bit encryption.

Please check related policies.

1. Enter “gpedit.msc” in the Start Search box.
2. Open “Computer Configuration”/Windows Settings/Security Settings/Local Policies/Security Settings.
3. In the right pane, enable the following policies:

Network access: Allow anonymous SID/name translation
Network access: Let Everyone permissions apply to anonymous users

Also please disable the following policies.

Network access: Restrict anonymous access to Named Pipes and Shares
Network access: Do not allow anonymous enumeration of SAM accounts
Network access: Do not allow anonymous enumeration of SAM accounts and shares
One solution you can do is.. the username and password that you are logged into the windows 7 pc, you can use the same username and credentials on the server (create a user in the server with those credentials) and allow that newly created user to access the file/folder you are trying to access.

That should solve your problem.
ChazNTroyAuthor Commented:
The application that I'm running cannot connect using login credentials. It has to have an open share.
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I believe the answer you want is at this link.   I had to make a simliar change to get Windows 7 to connect to a samba server.
ChazNTroyAuthor Commented:
Penguinjas - bad link. Get runtime error when link is opened. Try again please...

ChazNTroyAuthor Commented:
rar3z - this totally disabled my ability to even see the Windows 2008R2 server! Not cool :( ....
ChazNTroyAuthor Commented:
Eventually I muttered through this solution off of a few other websites. You put this together in one place and hope that this helps others. Wonder what Windows 8 is going to do for this type issue? Can't wait...

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