turn off "Simple File Sharing" (Tools->Folder Options->View) on the PC
Thanks for the suggestion, but unfortunately, this option is not available in XP Home, only in XP Professional. XP Home users are still SOL. The strangest part is that XP Home is *only* supposed to do simple file sharing by default. go figure.
And guest access with null passwords do not work either, even with the guest account enabled on the XP home machine.
It's probably something that MSFT has done in the CIFS/NTFS permissions layer of the Home version that has broken some standard. Although it did work fine in Tiger, so maybe something in the updated Samba code delivered with Leopard has a bug.