http://technet.microsoft.com/en-us/library/bb727037.aspx

Have a read of the above link re Vista File and Printer Sharing.

Permissions/Share info is there as well.

If using Norton, McAfee, Trend Micro I.S., make sure file and printer
sharing is enabled in THEIR firewall .(LAN allowed)

1st thing to do is make sure that the Workgroup Name of ALL the computers is
the SAME.

In Vista Network and Sharing:

Network Discovery: ON (So it can see the other computers)

Network set to Private (Public is for hotspots, airports, etc)

File Sharing: ON

Public Folder Sharing: ON (Vista’s Public Folder is the same as XP’s Shared
Docs)

Password Protected: OFF (unless you want to set up identical usernames, and
passwords (they can be different) on ALL computers in your Network). If you
have it ON, you will be asked for a username and password when you try to
access a Vista computer from an XP computer, or a Vista Computer.

Also, If you haven’t done so already, run XP’s Network Setup Wizard (in
Start >All Programs >Accessories >Communications), and tell the Wizard to
enable File and Printer Sharing.
Or > Start > Control Panel > Network Connections > Set up a Home or Small
Office Network.

I am having the same issue.  Up until a week ago I was able to access my XP
computer from my Vista laptop and vice versa.  I also had links for each on
the respective desktops.  Then this weekend I went to access the XP computer
from Vista and no only do I get this error but my link has disappeared.  I
can still connected to the Vista computer from XP and Vista can still print
on the XP's printer.   Nothing has been changed since the last time I
connected. I had this working for the last 6 months, so I don't know why it
stopped working all of a sudden.

Sounds like the same problem I'm having.  It began with the installation of
Vista SP1.  I can't believe there's no way to uninstall it!  I hope MSFT is
listening...

Danny,

The "0x80070035" is the Vista equivalent of an "Error 53" in Windows pre-Vista
(hex 35 = 53).  This is a "name not found".
<http://networking.nitecruzr.net/2005/06/mysterious-error-53-aka-name-not-found.html>
http://networking.nitecruzr.net/2005/06/mysterious-error-53-aka-name-not-found.html

On a small LAN, this is caused by name resolution, which typically uses SMBs
over NetBT over TCP/IP, being blocked, or dropped.
<http://networking.nitecruzr.net/2006/07/advanced-windows-networking-using.html>
http://networking.nitecruzr.net/2006/07/advanced-windows-networking-using.html

Take a look at logs from "browstat status", "ipconfig /all", "net config
server", and "net config workstation", from each computer, so we can diagnose
the problem.  Read this article, and linked articles, and follow instructions
precisely (Download browstat, and run all programs from a command window run as
admin):
<http://nitecruzr.blogspot.com/2005/05/troubleshooting-network-neighborhood.html#
AskingForHelp>
http://nitecruzr.blogspot.com/2005/05/troubleshooting-network-neighborhood.html#
AskingForHelp

I have same problem also - Can see the XP computer from the Vista one
but cannot access the shared files on th XP machine.
Error message is "Error code:0x80070035" "The Networth path was not
found."
My workgroup names are the same on both machines and the XP Machine is
showing in the Vista Directory tree OK. I can see and access the Vista
Computer and its shared files OK from the XP machine
I have tried a number of the responses on a number of forums including
meticulously following Mick Murphys link to the Vista networking
solution _ it does not work, including switching off my Symantec 2008
fire wall and also trying the re configuration options suggested for
Symantec it in Mick Murphys link.
None of this works and I am reasonalbly Tech savvy with computers -
Pity the ordinary user who just wants a nice home network like he used
to have with XP. Wake up Microsoft or we will all go over to Linux