Network security issues

My new 7 machine has a network security problem. I can not view the folders that are authorized on a network Vista machine but that machine can see the entire C drive on the 7 machine. The 7 machine can access the printer that is on the Vista machine as well as the network printer. The 7 network access st;uff is different than Vista or XP and I am not sure how to set it to be closed except for those folders I choose to open and how to get it to access the share folders on other machines.

If I look at the network configuration it also seems wrong. 7 configures itself when you connect to the network by Ethernet. In the schematic the 7 machine is shown connecting through the Vista machine when in reality they are connected in parallel into the router.

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