Hi Mark,
It sounds like you've done a lot of troubleshooting already without success. Let's go through some more steps to try and find a solution for your file sharing issue.
First, make sure both computers are on the same workgroup. To check this, right-click on the Windows start button and select System. Under the Computer name, domain, and workgroup settings section, click on Change settings. In the System Properties window that opens, click on the Change button next to Workgroup and make sure both computers are on the same workgroup name. Click OK and restart your computers.
Next, create a new folder and share it to see if that works. Right-click on a folder and select Properties. Go to the Sharing tab and click on the Share button...