How can I set up a shared folder between my desktop with XP and my laptop with Vista?

On your vista machine go to control panel and then "network and sharing" and scroll down and click the arrow on "file sharing" and turn it on. Then, go onto the xp machine and go to control panel and go to "Network setup wizard" and then follow the wizard and select "use local area connection". That's it You can also setup printer sharing after that too
 
Enable Sharing on both computers.

Right-click the folder you want to share > properties > sharing > under that tab are the settings.
 
^^ If you do it the way I said it will automatically share the "Shared folder" and its the correct way to do it.
 
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