I right click on the folder and choose properties and click sharing but it wont allow me to make the folder private. the box is grayed out. i have tried to format my computer to ntfs thru the run command but nothing works. help!
Your HD has to be formated with NTFS before you installed XP on it to have that option (if I remember correctly). You can't just format your drive as NTFS with an OS already on it as it would just wipe everything out with the reformat. If you're starting from scratch, run the XP installer and when you select which partition you want to install it to, it should prompt whether you want it to format the drive using FAT32 or NTFS. Selecting NTFS will give you more file security options within XP. However, formating the drive will erase everything on there, so be sure you have everything backed up you need.
For private sharing in Windows XP, you gotta turn simple file sharing off. Basically, go to My Computer, Tools, Folder Options, View, go to the bottom, and turn simple file sharing off. After that, when you enable sharing, it defaults to "everybody" sharing. Delete that account and add on whatever accounts you want.
Heh, XP Home with the crippled networking. Could be worse. It's doable, but a pain in the ***.
To summarize what the thing says, the easiest way to have sharing enabled and to share the folders you want shared. Then you reboot, press F8 and go into Safe Mode. Then right click on the shared folder, select Properties, Security tab, then add/remove/whatever to permissions.