Can't access network PC (sharing)

[TeamanFL]

I have a desktop PC with VISTA home premium and a laptop with VISTA basic. I have a router and can see both PC's. When I go to the network, I see all PC's and their share folders,but when I try to access the opposite PC, it says "windows can't access \\Lu-PC\c" or whatever folder I try to access. I set the permissions and sharing on both. I have this same problem if I go to the other PC.
I allowed share everyone full+change+read permission.

Specifically:
C:
sharing
advanced sharing
permissions
everyone
allow full, change,read

The error is 0x80070005. When I search for this error, people try to get me to DL regcure. One of the PC's is brand new and only been set up, no SW has been added. How can my registry be screwed up so soon?

There are no accounts or passwords on either PC. I am admin on both.
Please help!

 

[MilesAhead]

To get started my suggestion would be to just try to use Public on both machines, since it is shared by default. Seems like once you get that to work then if you want to share another folder it works. Go figure!