"Access Denied" error message in XP Pro & Home

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After new installs of both XP Home & XP Pro (I upgraded to Pro hoping it would fix the problem, and reinstalled) I continue to get an access denied error upon trying to access and create most folders on each of my networked PC's hard disks, however I can access and perform file mgmt in all folders on two volumes set up on an external hard disk on one of the PCs just fine. This is a cabled Linksys network. I have spent 2 hours with MSFT level 1 & level 2 support and they are stumped. Now I'm waiting for a 'level 3 consultant' to call me back in about a week since he called the wrong number and missed my 3 hour window yesterday. The 1st PC is a Dell Latitude CPx and the 2nd PC is a Compaq Presario 7478.

Anyway, if I try to create a folder, I get 'Invalid folder name or path, or folder already exists' or 'Unable to create new folder: Access Denied'. Oddly enough, I can browse a couple directory trees, but none others, and even create a folder and do file mgmt off of the root of both PCs, just not most subdirectories. This all worked fine under Windows 2000 Pro.

MSFT walked me through all of the standard solutions, to no avail. Any thoughts? Thanks! Rick.
 
Here's the Solution to the Problem

MSFT came through. To fix this problem, run secpol.msc from START. Drill down to Local Policies | Security Options. The 'Network Access: Sharing and security model for local accounts' should be set to Classic. Mine was somehow set to Guest. It can be changed by double clicking on it and all will be well.

Rick
 
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