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Your already connected via the router so the USB cables are a moot point.
One of the main ingredients to sharing is having the 2 computers in the same work group.
Right Click on my computer, Properties, Computer name (tab), Workgroup.
These should match for convenience.
Sharing: You will need to share the resources on each computer you want to share. From windows explorer right click on the folder you want to share and select the share option and go through the process to share the folder.
*Note: I don't have an XP home edition here to list the exact steps because it's just slightly different from XP Pro.
That should get you headed in the right direction. Please post back if you run into any snags.
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