To recap the lesson on this I'll keep it short. "Everyone" is not "Anyone." That is, in Windows networking "Everyone" are those with accounts.
So when I am logged into my Windows 8 machine as "gads" to be able to use resources on the Windows 7 machine I must also have an account there and permission to print. Testing this is each. I walk to my Windows 7 machine. Log out and then log in as "gads".
If you want to allow "Anyone" to use shares, printers we enable the Guest account.
Bob
In continuation to my previous thread on this subject, I now have another network printer problem in the same system. I chose to open it in a separate thread because the previous one became too long.
I have 3 PCs on my home network
1. Windows XP (SP3) desktop with HP6500 E709a USB printer.
2. Windows 7 (Ultimate SP1 64 bit) desktop with HP 1018 USB printer.
3. Windows 8 (64 bit) laptop.
All computers can see each other and share folders on the home network.
Computers 1 & 2 can freely print on their own printers, as well as on each other's printer. Computer 3 (Win
can print on the HP6500 (which is connected to the XP computer), but cannot print on the 1018 printer connected to the Win7 computer.
I know that on the Win8 laptop I have to define a local port for the network printer, but when I try to do it I get "Access denied" error message. Win7 denies access from Win8. This is strange, because Win7 does allow access to XP. On the WIN7 computer, under printer properties/security, print permission is granted to "Everyone".
So what could be the reason for the "Access denied" error? I guess it has to do with security / users / permissions, but I cannot find a solution.

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