I am an administrator on my PC at home and set up another user account as a "limited user". When logged in under the "limited user" account I can see all the files located in my C: drive that are under administrator. Is there any way to limit access to the C: files under the "limited user" account?

Is this XP Pro or Home? Pro doesn't have accounts designated as "Limited User." There are Admins, Users, Power Users, etc. If this is XP Home, and the user is indeed a "Limited Account", no other profiles are accessible from that account. Life is more painless for those who are brainless.

I still see all of my Admin files and folders under the "Limited user" account and they are all accessible. Is there a way to restrict access or unshare the folders/files?

The limit of limited user account according to Windows Help & Support is as stated: The limited account is intended for someone who should be prohibited from changing most computer settings and deleting important files. A user with a limited account: Generally cannot install software or hardware, but can access programs that have already been installed on the computer. Can change his or her account picture and can also create, change, or delete his or her password. Cannot change his or her account name or account type. A user with a computer administrator account must make these kinds of changes. Can manage his or her network passwords, create a reset password disk, and set up his or her account to use a .NET Passport. That's about it. Experienced users know they can access anything on the computer even by using IE. i_XpUser

If the limited user can see the Admin's files, then you need to change the file permissions on the Admin's files. This has nothing to do with shares or share permissions per se. Life is more painless for those who are brainless.

Seems there is a question about do you want to keep your files private somewhere in the admin account. Are you sure you are looking under c:\documents and settings\(admin account)\ subfolders?