I had the same problem and this is what I did to fix the problem. I do not know if this is relavent, but I first installed all the critical updates on the machine running xp pro. Then on the Host machine, in my case, the machine running xp pro I turned on "enable NetBIOS over TCP/IP and made sure the computer browser service was running. I ran the network wizard on the host and have to run the wizard twice. The first time I get the same error message, I open up the wizard again and run it and it sets up the network, I then run the network wizard on the client computer, which is xp home in my case. I hope this helps
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