rawprawn I understand about the security codes needed in Win7 and I have got both the notebooks to accept the same code. Each notebook will see it's self in the workgroup but not each other! I also can't get rid of the padlock displayed when I right click on 'My Documents folder.
With two Windows 7 machines the easiest way may be to set up a Homegroup, in doing this the setup it will create a security code which you will need to copy and use on both machines fot it to work properly "and they claim this as progress" ??
If all else fails download and install Cisco Network Magic free 5 day trial version to both machines and let it set up network sharing, once you are happy that it is working you can choose to uninstall it or maybe to buy the full version
Sharing folders between two Windows 7 machines with the new HomeGroup feature is an easy process, but the HomeGroup feature is not compatible with Vista or XP. For this tutorial we are using Windows 7 x64 RC1 and XP Professional SP3 connected through a basic Linksys home wireless router.
First make sure both machines are members of the same Workgroup which by default is named Workgroup.
More Information here I give you a URL,it can help you.