**** Full credit for the solution to this problem goes to Alan LaMielle. Thanks Alan! Original article link here:**
It has been over a week since my last post, so I figured it is time to add an update! I was able to help out a family member with a strange networking issue. They set up a very simple Windows file share on a Windows 7 computer and was attempting to access that share from a Windows XP computer on the same network. Here is the error screen that popped up:
“System error 58 has occurred. The specified server cannot perform the requested operation.”
To me, this was an access issue; something permissions or rights related. As it turns out, I was only %50 correct. I found the resolution to this issue on . The problem originates with Windows 7. Here are the steps to take to resolve the problem:

  1. On the Windows 7 computer that is hosting the file share, open the registry and edit the following keys:

HKLM\SYSTEM\CurrentControlSet\Control\Session Manager\Memory Management

Change the value in "LargeSystemCache" to 1.
2. HKLM\SYSTEM\CurrentControlSet\Services\LanmanServer\Parameters

Change the value in "Size" to 3.
3. Open GPedit.msc from Start > Run.
4. Navigate to Windows Settings > Local Policies > Security Options.
5. Locate “Network Security: LAN Manager Authentication Level” in the list and double-click it.
6. Change the setting from “Send NTMLv2 response only” to “Send LM & NTLM – use NTLMv2 session if negotiated”.
7. Restart the computer.

Alan LaMielle’s blog