XP machine can't see file shares on Win7 machine

I have read and followed a lot of posts to no avail.
specifically I have followed the advice in "Share Files and Printers between Windows 7 and XP - How-To Geek" and "How to make Windows 7 work with older Windows versions for networking and file sharing"
- both machines are in the same workgroup
- there is no trouble going from Win 7 to the XP box
- on win 7 the network is defined as a 'Work' network
- firewalls are disabled on both boxes
- Advanced Network settings
- Network discovery in ON
- File and Printer Sharing is ON
- Public folder sharing is ON
- password protected sharing is OFF
- Allow Windows to manage Homegroup connections
- the shared folder in Win 7 says its shared (its not in the public tree)
- On folder Advanced setting decurity, 'Everyone' has been added
- On folder Advanced setting sharing it says "People without a user account and password for this computer can access folders shared with everyone"

The XP box is using XP Home which can only use 'Simple File Sharing'.
On the XP box the win7 machine appears in the Network list under the workgroup.
If I click on the machine I get a login prompt!
Attempting to map a drive to the win7 box the same network is shown but browsing to the win7 machine does not list any of the shares. (it also does not ask for a login)

Interestingly if I go back to the network and enter the userid / password then I can see the shares and over in other windows I can map a network drive and see the shares as well.

So it looks like Win7 not honoring the request to allow anybody to access a specific share.
Is there something else at the macro level that needs to be adjusted ??
Or I could even live with it if it asked for a user and password directly


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