File Sharing Problem - Windows XP & ME Network

I've got a network problem which is driving me crazy & I'm sure I've overlooked something obvious but can't think what. I'd be glad of any suggestions.

I'm networking 2 PCs - PC1, a Dell 4550 (XP Home, SP1, plus all updates, NTFS) and an old self-built machine, PC2, running Windows ME. The PCs are connected by a crossover ethernet cable - the Dell is connected to a USB broadband modem and internet connection sharing is enabled. I've used the XP Network Setup Wizard to configure a network and enabled sharing of the the My Documents folder on both PCs. At present there are no firewalls installed on either machine, apart from the XP firewall being enabled on the internet connection on PC1.

Both machines are able to browse the internet. The shared documents folder on PC2, the Windows ME PC, can be viewed and opened by both machines. However, although the shared documents folder on PC1 (DellDocs) is visible from PC2, it cannot be opened from that machine - the error is:-

" \\PC1\DellDocs is not accessible. Not enough memory is available. Quit some programs."

I get the same message if I try to open the shared document folder (DellDocs) from PC1 via My Network Places\Microsoft Windows Network\"Network Name"\PC1\DellDocs although the contents of the folder is visible OK if I try to view it as My Network Places\DellDocs on PC1.

However, if I boot PC1 in Safe Mode and log on as Administrator, I can open DellDocs on PC1 via My Network Places\Microsoft Windows Network\"Network Name"\PC1\DellDocs.

On PC1, I don't have a password on the Administrator account but my own account, on which I generally log in, is password protected. On PC2, the ME machine, I log in with my user name & password that I use on PC1.

I've searched the forum & Google for a solution & tried the following:

1. Ensured that sharing is enabled on the folder in question.
2. Unchecked sharing, rebooted the PC & rechecked it.
3. Enabled the Guest Account.
4. Booted the computer in safe mode, logged on as Administrator and set permissions giving all network users access to the folder.
5. Re-run the Network Setup Wizard.
6. The following protocols are installed on PC1
Client for Microsoft Networks
File & Printer Sharing for Microsoft Networks
QoS Packet Scheduler
TCP/IP
Also, the NetBIOS setting is "Enable NetBIOS over TCP/IP"

I've set up peer-to-peer networks before but don't remember running into this problem. As I say, I'm bound to be doing something really stupid......................

Message Edited by gudgeon on 12-09-2003 07:29 PM