Windows folder sharing problem in 7 & Vista

I have a client that has 6 windows pcs. 2 are windows 8, 3 are windows 7 and one is windows vista. They are using a peer to peer setup with no server. All their shared files reside on one of the windows 7 pcs which is not used by anyone else and is 'considered' their 'file server' even though it is running W7. Up until last week they put all their files in one folder on this W7 pc. Everyone had access to it because there was no real security on it. Meaning no one had a login account on this W7 pc. Last week they called me in and wanted me to restrict access to the main folder we will just call 'company docs' for now due to the fact that they had a new employee starting. The client wanted me to create a new folder called 'company docs 2' on this W7 pc and give full access to everyone. The client would move whatever docs were needed to be shared with the new employee to the new folder and the rest of the office would have access to the original folder. I added everyone to the W7 pc as users with admin rights. Created the new folder. Confirmed that the new folder's security had the everyone group having full rights. I deleted the EVERYONE group from the shared folders rights and then added each employee to it and gave them full rights except the new employee. All was good after a reboot except the Vista computer. No matter what I did after I removed the everyone group, I couldn't get that computer to see the original company docs folder. Everyone else could.

So how do I get this Vista computer to see the shared folder and remove the rights of the new employee?