Network can see 3rd comp, but not access

[skmr3]

Howdy all.
(I apologise first up if this has already been asked)
I have four comps on a small network, but only need to talk about three.
(For simplicity sake, lets call them AMD, P3, Laptop)
The P3 machine is a new machine to the network.
All other machines can see each other, share file etc.
The laptop and P3 can communicate no problems, but when the AMD tries to
communicate to the P3 (and vica versa) the below error message comes up:

\\ComputerName is not accessible. You might not have permission to use this
network resource. Contact the administrator of this server to find out if
you have access permissions.
Login failure: user account restriction. Possible reasons are blank
passwords not allowed, logon hour restrictions, or a policy restriction has
been enforced.

This error appears as soon as you click on the computer in windows
explorer/network neighbourhood.
I can ping each computer no problems.
All setting are virtually identical on all machines. (I am not running a
server, so IP ranges are the standard 169.254.?.?)

Any help/pointers would be greatly appreciated.

Cheers.
Russell

 

[JohnR]

Where is this "Limit local etc.........." switch at.?
TY
John

 

[MaverickSITG]

Control Panel- Admin Tools- Local Security Policy- Local Security Settings-
Local Policies- Security Options (XP Pro , of course)

 

[JohnR]

Thanks, but im running the "home " version.
John