What am I doing wrong

I tried that previously and again just now still not working

have you checked to make sure file and print sharing is checked in your network properties for both desktop and notebook wireless adapter?  your workgroup name is the same for both?  turn off XP wirewall for now...if you have zone alarm or some other software firewall, turn it off.  Reboot both after you've ensured all your settings are ok. 

Some links for you to read and yes it is a firewall issue.  More than likley you have a third party (Norton or Mcaffee) blocking the connection.

http://www.microsoft.com/windowsxp/using/networking/maintain/troubleshoot.mspx
http://www.microsoft.com/windowsxp/using/networking/setup/default.mspx
http://www.practicallynetworked.com/howto/
http://www.theeldergeek.com/quick_guide_to_simple_file_sharing.htm
http://www.microsoft.com/windowsxp/using/networking/default.mspx
http://www.ezlan.net/Wireless_Security.html

On any computer running Windows XP with SP1, disable the Windows XP firewall. It will not allow File and Printer Sharing. On computers running Windows XP with SP2, make sure that the Windows XP firewall has File and Printer Sharing checked off on the Exceptions tab. If you are running any third party firewalls, like those provided by such programs as Zone Alarm, Norton Internet Security, or McAfee Security Suite, make sure they are configured to allow local network traffic

Thanks folks all fixed yes it was the software firewall

That's three today!!