Very weird, but I can't see the computers on the workgroup in Windows 7 Home Premium.
I know it's not the network, because I ran a 3rd party network diagnostic tool that shows me ALL the NetBios names and IP's of all the computers in the workgroup. I can also ping the IP and NetBios name of the computers from the cmd prompt.
However Windows 7 does not show any computers in the network map, except itself.
I tried creating LmCompatibilityLevel and set it both to "1" and "2" but did not help.
Also tried to increase the LanManServer parameter size to "3" but did not help.
Also tried reducing the encryption to 40bit compatibility (from default 128 bit), but did not help.
I suspect that the problem is because I have an wireless Access Point connecting this computer to the network, and for some reason the network discovery doesn't see the computers. However it does show the AP, Router, and a few printers.