I have Windows 7 64 bit on 1 machine Windows 7 32 bit on the other. The 64 bit machine is the host and the 32 bit being the host. I'am connecting thru a lan via cable NO router No switch, just computer to computer. My problem i think is due to no properties for and including..file and printer sharing. client, service and protocol, on either computer. When i try to install these it throws up a window "have disk" and i tried using my windows 7 installation cd but to no avail, so now i dont know where to go or what to do to get those installed. Another note here im running a MIFI 2200 verizon tethered to my host machine for internet.
When you put in the disk it asks for, what happens? Try doing a manual search on the disk for the files it asks for. ICS should be enabled without needed to do any additional installations though, some some setup is not quite right.
Did you use the same disk to install on both machines maybe?
Are you getting a dos window? It should tell you "windows needs files off the windows disk", then if it can't find it, it will come up with "could not find file, please insert disk with *filename* on it or provide an alternate location". It will then pre-fill the location and file name in for you. If you are not getting that, I can't picture what is happening with this setup.