Problem sharing folders on Windows 7

I'm trying to network my computer that runs XP to my friends laptop that runs Windows 7. He's created a homegroup and he's turned his file sharing on but he can't see my computer and I can't see his. He also can't share his public folder, it says "folder can not be shared." I have another computer on my network that runs XP and I can see that one on my network just fine and it can see my computer. I'm pretty much a noob when it comes to networking so if anyone could help I would really appreciate it.
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