Password protect a shared directory

Have LAN with WinXP home edition. Would like to share some directories, however for security, I would like to set it such that a password is required to access that directory from the other PC's on the LAN.

This simple task has proven much more difficult than I was expecting. I can get to the "Security" tab via right clicking on the directory and selecting Properties. (By the way, you have to boot up as Administrator under Safe mode to even see the "security" tab). This allows me to access the Permissions options, but I'm afraid I do not know how to set the RWED permissions such that a remote user will be challanged for a password - there's no where to specify a password for the folder. And if I set everything to Deny, it just acts like the shared folder doesn't exist to my other machines. Any tips on how to move forward?

Please note that since this is WinXP Home edition, I do not think you can turn off "Simplified File Sharing".

-Clay

To turn off simple file sharining do the Following.
From a Explorer window click on 'tools' 'folder options' then click the 'view' tab and scroll all the way to the bottom. Uncheck the 'Use simple file sharing (Recommended)' feature.

Security Settings tab on a drive.
DRIVE MUST BE NTFS FORMATTED, in order to have these features. If that is the case and you can see the security tab. From there you will set your rights for the users that can and cannot view and use data for that drive. This is simple for NTFS rights. To have share rights, you need to have that drive or folder shared and the 'server' service needs to be running. I always have my drive shares setup with a $ at the end so they did not auto display with a network browse. EXAMPLE: MP3songs$
The PC on the LAN that will have the share will need to be in the same 'workgroup' and will need to have the same user name and passwords from each PC in the workgroup. Those users will need to be assigned Security rights to the drive/folder share in order to view the share without having to provide a login each time they use the share. This provides point to point access and communications within the workgroup and the configured share.