Go to Start>My computer. On the left side, under "Other Places" it should say "My Network Places". Click on it. On the left hand side, under "Network Tasks", click "Set up a home or small office network". Press next twice, click other, click next, click the first option ("this computer connects to the internet directly or through..."), next, name the computer whatever you want, click next, name the network whatever you want, but make sure you make the same network name for both computers, then next, then click "just finish the wizard" and then click finish.
Do this for both computers.
To view the other computer, click on "view workgroup computers".
To make a shared folder (each computer can only see the other computers shared folders), right click on a folder, click properties, click sharing (at the top), and in the second box, check "Share this folder."
Hope that helps