At times I’ve encountered computers that, regardless of what you do, will simply NOT allow simple windows networking to work properly. ┬áThe fix below worked for me today on one such computer:

 
1. Reset all the shared resources of your first PC (With which you had the shared folders)
2. Control Panel->Administrative tools->Local Security Policy->Security Options-> & set “Network access: Do not allow anonymous enumeration of SAM accounts” & “Network access: Do not allow anonymous enumeration of SAM accounts and Shares” to “Disabled”[By default these settings are enabled]
3. Restart both PCs.
4. Create shares by right clicking the folders (Note: If the “Use simple file sharing” checkbox is checked, you shant worry about setting the permissions)