Yeah you have to say which files or folders you want to share, or you can share the whole drive.... but remember if you share a whole drive you will be sharing the whole PC's contents in that case.
PS: I forgot to add that you will have to set up the same workgroup on both machines using the same workgroup name. You will probably see that you have to give an ID to identify each computer on the network too.
More info can be found here and also how to set up folders for sharing:
http://www.youthtech.com/techstuff/n...printshare.htm