I agree that the fact the laptop is using Win Me may be the root cause of problem. Not sure what you mean by this though
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Have you tried connecting specifiying a user name in the format "pcname\username" & password?
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---------- Post added at 12:35 ---------- Previous post was at 12:21 ----------
I have connected another desktop running XP to the network and that can connect to the shared folders/files on the main desktop so I am assuming it is a problem with the laptop running Win Me.