I've set up a connection on my Windows 7 machine at home as a home network. I've then logged into another Windows Vista machine at home and realized that as soon as I enabled discovery under Start -> Network on such computer I could see all files and folders located under C:\Users on my Windows 7 account, and could also create files and folders therein.
At the same time, while from my Windows 7 computer I could see the Windows Vista computer, upon clicking on it no files or folders were revealed.
I don't understand why my Windows 7 computer is exposed in such way. After all I never fiddled around with network settings. How can this be the default? What has happened to network security and how can I fix this?