How can we disable or enable Simple File Sharing in Windows XP?

Simple File Sharing permits controlling both sharing and NTFS permissions at the folder level. Network access is through a guest account. Windows XP Home Edition always has Simple File Sharing enabled. By default, it is turned off in Windows Professional when it joins a workgroup. Classic file sharing is used when Windows XP Pro joins a domain. Windows XP Home cannot join a domain. Simple File Sharing can be disabled in Windows XP Pro when it is a member of a workgroup. When it is disabled security can be controlled for individual user accounts.
To disable Simple File Sharing, click start, double-click My Computer, Tools, Folder Options, View tab, at the bottom of the list uncheck Use simple file sharing (Recommended).

Setting Permissions for Shared Folders and Files (XP)

Sharing of files and folders can be managed in two different ways. If you're going to select simplified file sharing, your folders can be shared with everyone on your network or workgroup, or you can make your folders private. (This is how folders were shared in Windows 2000.) However, in Windows XP Pro, you can also set folder permissions for specific users or groups. In doing this, you must first change the default setting, which simple file is sharing. To change this setting, follow these steps:

•Open Control Panel, click Tools, and then click Folder Options.
•Click the View tab, scroll to the bottom of the Advanced Settings list.
•Deselect the check box which says "Use simple file sharing"
•To manage folders permissions, browse to the folder in Windows Explorer, then right–click the folder, and then click Properties. Click the Security tab; assign permissions, such as Full Control, Modify, Read, and/or Write, to specific users.
You can set file and folder permissions only on drives formatted to use NTFS, and you must be the owner or have been granted permission to do so by the owner.