Simple file sharing is comlicated

I've a problem where it may be asked by several person but inteh google search I coudln't find the answer. I have a workgroup network with 3 computers. I need to create a folder in one machine and share it onlt between 2 computers and the 3rd computer must not access it. Well out of those 2 machine 1 is having fat32 that i can convert if necassary. Os is windows xp pro. Is their anyway I can accomplish this?

Oki I got another idea but not sure it'll be the 100% correct soultion. What if I make a folder in one computer and map that folder to the other computer. In that case only those two can intreact witht the folder adn the thrid person cannoth access it. Is this a correct method? Actually I need a advice in the sccnario ASAP.
Thanks in advance

WHy aren't you just disable simple file sharing and set passwords for your shares? that's the best way to do it I'd say.

Disable simple file sharing. Get NTFS on all the pcs. Share the folder out to everyone but use NTFS deny permissions for the machine that you dont want having access.

well that is where exact problem located in the permissions I cannot find the other computers or user accounts. I just browsed but only the local machine is showing. This is a workgroup I've setup. So in the network nebourhood it'll show the computers, but when it comes to share and security I cannot see the other computers and the user accoutns. Sometimes I wonder these XP totaly built only keep in m,ind the domain structure. Eventhoughthe home netowrking is made easy permission is made hard in workgroup mode.
One more thing is in one of the computer under the sharing and security you can't find the security tab. I checked evey protocol and checked weither the file and printer sharing enable adn everythig is fine. So what is I'm missing in here guys? So far I'm not sure that mapping thing can do or not. I'm really stuck in this problem. Neeed some help

It means this other computer has simple filesharing still enabled. Which is why the security tab is not showing.
You have to create the user(s) you want to give access and set their passwords on the machine with the shares. then tell the others who are allowed to access the shares those usernames/passwords

well in that computer simple fiel sharing option is disabled and when i search in te net one forums said that you have to hold shift key and then right cick so option will be enable. Anyway as u told me I'll try to create a user accounts and give password to them and then try to share them and see. I think it'll work it out. Thanks lot for the help you guys are giving. I mean by boss seems to be quite desprate to impliment this method.

Oki guys I found a solution in this article

http://practicallynetworked.com/sharing/xp/filesharing.htm

according to that make a folder and hide it putting a $ mark so it'll be not visible int eh ntwork and map it to the other users machine. WEll that is pretty neat and simple. Anyway thanks lot for the support
cheers

Yeah I was going to suggest using $ after the share, that hides the directory, not really secure, but for novice users they will never find it.