|When you change a folder to make it able to share, that means only shared within my local network, and not on the internet correct? |
That is correct
M$ says I have to have W7 on both devices but is there a way around that?
That's the first I've heard of that. I just put together a new gaming rig for my wife and put Windows 7 Pro on it. I had to connect to a shared folder on my XP Pro system to copy a few files over for her and had no trouble whatsoever mapping the drive and copying the data.
Click on my name above in my response and read my "how-to" guide labelled: "You try to connect to a share but are asked for a Username/Password" for a clear explanation on creating shares and accessing them.