Browse to “Local Policies” -> “Security Options”. Now look for the entry “Network Security: LAN Manager authentication level” and open it. Click on the dropdown menu and select “Send LM & NTLM – use NTLMv2 session security if negotiated”. Apply the settings.

In the Advanced sharing settings page of Network and sharing center, you need to have it set as Work/Home profile. Try

-Enable network discovery
-Turn on file and print sharing
-Turn off password protected sharing
-Use user accounts and passwords to connect to other computers

The other settings such as encryption I have set as use 128 bit encryption.

Please check related policies.

1. Enter “gpedit.msc” in the Start Search box.
2. Open “Computer Configuration”/Windows Settings/Security Settings/Local Policies/Security Settings.
3. In the right pane, enable the following policies:

Network access: Allow anonymous SID/name translation
Network access: Let Everyone permissions apply to anonymous users

Also please disable the following policies.

Network access: Restrict anonymous access to Named Pipes and Shares
Network access: Do not allow anonymous enumeration of SAM accounts
Network access: Do not allow anonymous enumeration of SAM accounts and shares
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For my pc I set following setting:

I fixed this probleme – windows 7 can not connect to share on server 2003, by this single step:

Browse to “Local Policies” -> “Security Options”. Now look for the entry “Network Security: LAN Manager authentication level” and open it. Click on the dropdown menu and select “Send LM & NTLM – use NTLMv2 session security if negotiated”. Apply the settings.

Referecen link: http://social.technet.microsoft.com/Forums/en-US/w7itpronetworking/thread/68ffbe2a-09a7-4e29-859c-ca1aaf75dcd1/