Ok I can get into the xp machine from vista and ping the xp machine from vista and I create and share folders from xp so I can open them from vista and I can access the printer that is connected to the xp machine from.

It is a one way street though, can't ping vista from xp much less open folders.

If I look in my network places in xp; under network task > view workgroup computers I see the two computers in my network. In vista in the start > network I see two icons for the router and the vista computer.