rt mouse click my network places go to properties. should show your network adapters. rt mouse click your ethernet card and go to properteis. you should have a file and printer sharing for microsoft networks listed and checked.
sorry use msn and going to bed soon. Last ditch effort. restart both computers. it seems like everything is set up proper and should be workinging. kinda pissing me off cause you have done everything right. sometimes they just need a reboot. but i doubt it sorry we couldn't get it running.
Real quick before you go, when I type in \\PC\Friends where the folder 'friends' is shared on my desktop, I can view the contents. Same goes with each of the other shared folders. So I can manually type in the address and it works...