I get this same error quite frequently. I have a file share on a Windows 7 x64 Ultimate machine. When I get the "not enough server storage available" message on my XP client, I go to the Windows 7 machine and restart the Server service. This only fixes it temporarily. The problem comes back a short while later. It seems to happen exclusively when doing peer-to-peer networking with a mixed environment (Windows 7 and other clients). When the error is occurring, I can go to my Windows 7 laptop client and it has no problems accessing the file share; only the XP client experiences the error. I know that in Windows 7 there is both the "homegroup" sharing mechanism and the usual file share. XP clients only get access to the usual file share. Windows 7 clients get access to both. But when the error occurs, my Windows 7 laptop can still access the file share by either means (generic share or via homegroup). My take on this is that, bottom line, Windows 7 does not play nicely with other OSs for peer-to-peer networking. I've read other forum posts that show this started in Vista, and was simply not fixed in Windows 7. I hope this gets fixed, because most homeowners are not going to buy a Windows Server, and some of our older machines can't run Windows 7.