When sharing a folder in LAN, can I see what files are getting downloaded, and by whom?
What software can I use for this? I use Windows XP.
Not to my knowledge. Windows doesn't keep a log over accessed files. My suggestion is to setup a FTP server.
FileZilla is a free FTP server and Client with user accounts and logging.
You can see who is currently connected to a network share and what files they have open. I don't know of anything that logs that data if that's what you are looking for.
To view current connections: