Cannot See Local Home Network

I've got two computers running Windows 7 that are wired together on a network with a Linksys Router.

On Computer #1, I can see Computer #2. But, on Computer #2 I can't see Computer #1. That tells me that I'm correctly wired and that the router is working.

Now, when I go into the Networking and Sharing Center using the Control Panel on Computer #2 it looks like the setup defines the network as "Network 4 Public network - Access type: Internet, Connections: blank".  I think this should say "Network 2 Home network - Access type: Internet, Connections: Local Area Connection".

The question is:  How do I change the network on Computer #2 to a local area network (i.e., HomeGroup)? I can't figure it out.

I DO NOT have a wireless setup. Everything is hardwired.

Thanks.
gbmcneilAsked:
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NVITConnect With a Mentor Commented:
Have you tried "Choose homegroup and sharing options?"
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NVITCommented:
On problem computer make sure Network discovery and File and Printer Sharing is on:
Control Panel\Network and Internet\Network and Sharing Center\Advanced sharing settings
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Kamran ArshadIT AssociateCommented:
Also try turning OFF Windows Firewall on computer 2 and any AV just for diagnosis. Some application is blocking it.
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nader alkahtaniNetwork EngineerCommented:
On PC 2 you should use Network troubleshooter in the following guide http://windows.microsoft.com/en-NZ/windows7/Using-the-Network-troubleshooter-in-Windows-7
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gbmcneilAuthor Commented:
Hello NewVillageIT -

Network Discovery and File Sharing are on. I have not tried Kamran Arshad or Nader Al-Kahtani's suggestion yet. I thought that I would post a picture first.This is what I see in Control Panel. I think that I should see a reference to a Local Connection - not a Public one.
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gbmcneilAuthor Commented:
I don't think that the problem is the connection. It's the fact that my configuration is not properly defined.

It should say "Network 2    Home network      Access type:       Internet
                                                                                 HomeGroup:    Joined
                                                                                  Connections:   Local Area Connection
                                                                                                            Local Area Connection2

But, how do I change the existing setup to the above?
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