After you enable sharing and choose what to share with other computers, you create a file server where you can transfer files between computers, share a computer with your network, copy videos, or share images.
How to Share Windows XP Files Across a Network
The XP network approach streamlines network file access:
Windows XP Sharing Tips
An alternative way to share files and folders entails moving or copying them to the Shared Documents folder located at C:\Documents and Settings\All Users\Documents. In Windows XP, all files contained in the Shared Documents folder are automatically shared on the local network. The procedure for sharing files in Windows 2000 and earlier versions of Windows can be accessed from the File > Sharing menu in Windows Explorer. Sharing files in this way does not let you share files outside of your local network. In other words, you cannot send files to your friend who lives miles away. For that, you need a file-sharing website like WeTransfer or a cloud storage website like Dropbox that supports public links.