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In the Workgroup dialogue box, enter a name, and remember it, because you will have to make it the same on all PC's you want to be able to talk to each other. Click Ok, and the computer will reboot. That's it!

Setting the Workgroup in Windows XP:

Right click My Computer and select Properties from the menu that opens. In the System Properties window, click the Computer Name tab.

In the Networking Computer Name tab click the Change button. In the Computer Name Change window click Workgroup, and change it to match the name on the Windows 98 machine.

Click Ok, then Ok again.

Good, now XP and 98 are in the same Workgoup.
Sharing Resources/Granting Access
Your computers are in the same Workgroup, now what? If you only have one printer, but you have multiple computers, or if you want to be able to share files between computers, do the following:

Windows 98 File and Printer Sharing:
Right click on Network Neighborhood and select Properties.

In the Network window, click on the File and Print Sharing button. A File and Print Sharing window what opens, click to check the box next to I want to be able to give others access to my files, I want to allow others to access my printer(s), or both, depending on what you want to share.

Click Ok, and Ok. Your computer will reboot. If you chose to share files, you'll still to right click a file, and share it as follows. You can share your entire Hard Drive if you wish, but I recommend against it. In either case, I recommend adding a password, and I'll show you how: