Win7 Networking

I am having problems Setting up Password Protected Folders on a Home network.. Hoping someone here might be able to Answer a Few Q's.

I have 4 Pc's
Acer Aspire Laptop (win7)/ Custom made XFX game Boxes(Win7) / x2 Old Dell Boxes (XP pro)
All 4 are connected by cat5 to a Linksys 5-port Switch that is connected to a Linksys Router and so on to the internet Box...
I got all 4 computers to share Files By setting up a Workgroup (BC home-group don't work) -Public Network-

Now my problem is that i would like to Password protect share folders, I have tried setting up Permissions.
But not matter what i do the Shared folders Eather work without Password needed or Don't work and gives me an Error.

Can someone offer me more Details on Setting up Private Share folders? :confused:

And if possible A way to have Different password for Different Folders?:confused:

Possably a Program that i can get to Set up This kinda Sharing?:confused:

Thank you if you can Respond...

Using the Guest account i setup a Account with a password.
Be4 i set up the account i could share the couple of folders on PC1 but with no password after setting up Permissions
and logging onto PC2 i get a box saying:

//(Computername) is not assessable. You might not have Permission to use this network resource. Contact the admin...

Logon Failure the user has not be granted the Required logon type at this computer.

I setup Credentials on these two computers Both using the Guest Account....

Any Ideals as to what i am doing wrong? or not doing?

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