Windows 7 and the lack of file sharing

Alright, so I am trying to get my printer to work in Windows 7. Well, it was detected after a couple of things I did to it.

Afterwards, I tried to set it up for sharing.

Well, that didn't go so well.

I made sure Homegroup is/was turned off.
Checked the Permissions, set the user to "Full Ownership"
Made sure that I could view the networked computer

Now, when I try to install the XP Pro (32 Bit) driver on my current (sig) machine, it comes up with:

"Windows cannot find a suitable printer driver. Contact your local administrator for help locating and installing suitable drivers."

Well, I know for a fact that these are the correct drivers, they worked fine when this printer was on Linux.

I am wondering if it is just some lame-ass Windows 7 issue. Or, maybe a global permission problem that you can't change with a GUI.

Anyone have any advice?

EDIT:

The same issue occurs with folders/files. I can not view any files or folders that are shared.