The error message is:
Incorrect Password or Unknown Username
Let's call that XP machine "XP1", and the Username "User".
After several hours of searching through the Networking settings, looking in the registry, rebooting, comparing it to other machines, trying various fixes, etc., the following fix was found to work.
When double-clicking on XP1 icon in the listing of found servers, instead of entering "User" as the Username when it asks for a login, enter "XP1\\User".
I have no idea why this works, but it does. It's not part of a Domain (AFAIK) - it doesn't use WINS and neither does anything else in the Workgroup. (All of the machines of interest are in the same Workgroup.)
I got the pointer to try it from [link|http://www.mcse.ms/message526344.html|here]. MS's Knowledgebase was less than helpful.
HTH someone else out there.
Cheers,
Scott.