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I want to share on my home network an external USB Hard drive connected to my netbook running XP Home.

My laptop and home PC (both running Win 7 Home Premium x64) can see the shared drive but cannot access it.

This is very frustrating as I can share other folders on the netbook but not the external hard drive.

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If they can both see it but they can't use it, it's likely because the users group doesn't have permissions. Keep in mind that accounts running in Win7 with UAC run as standard users, or the local Users group. Accounts on XP, by default, run as Administrators. It's possible that the drive was created and local users don't have permissions to read/write to it.

Another scenario is that XP, by default, authenticates everyone as Guest.

You can solve the problem by giving the Users group permission Under XP, if you right click the shared drive, go under security and give the Users group the correct permissions.

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