Can I set up a wireless home network if my main pc is running Windows XP Home?

Yes you can run wireless networking on winxp home. You must "share" the folders you wish to "see" on the other pc. To do this - right-click on a folder & select properties/sharing/share this folder on the network. As for the other pc which you cannot "see" - make sure it's firewall isn't blocking you.

Try running the Wireless Network set up wizard from the p.c. and use a flash drive (an MP3 player may also do the job) to copy the settings when instructed to by the wizard. You can copy the settings without a flashdrive but it's more awkward especially if you want to use W.P.A. rather than W.E.P. for securing the network. Your computers should then be able to see each other and any folders you have set for sharing. To set a folder for sharing, right click on it and the click properties and then in the window that opens click the tab for sharing and put a tick in the box next to the words share this folder...if you want to be able to change anything in the folder then put a tick in the box by the words allow other users on the network to change my folders.

It's pretty simple. On the wireless computers, go to start, all programs, accesories, communications, wireless network setup wizard. Follow the setup instructions to setup the wireless network. Make sure you type in the correct SSID and WEP/WPA key. Then on the wired PC, use the network setup wizard. Make the workgroup name the same as the SSID on the wireless computers. Now after you restart the computers, go to my network places, and click view workgroup computers. You can now access the shared files, printers, and any other shared devices. This method might not work, but most likely it should. I used another method which was basically the same as this except I didn't put the workgroup name on the wired computer the same as the SSID.

No. it should work. A few things, both machines have to be on the same Domain for one. If either has a different domain name in their network settings, they will not see each other. Next the wireless router needs to be set to that domain as well. File and Printer Sharing has to be turned on on both machines. You will also need to turn on sharing on each PC for whatever folders you wish to share. I use a similar setup here. two machines and a PS2. Works great.

You have been told incorrectly. Try running the built in Network Setup Wizard that comes with Windoes XP on both computers until they "see" each other. As far as the sharing, you just have to make sure that you have sharing enabled on the file, and the directory folders of that file must also be shared.

Windows XP home is fine for what you are doing. You need to make sure that you have disabled any firewalls or security software you may be running. The computers also need to be set to the same workgroup name (start->right click on my computer-> properties->computer name->change-> workgroup). Try UNCing to the other computer. Do Start-> Run and \\computername\ and press ok (substitute name) This should bring up a list of available shares on that computer if it is connected to the network. Keep trying this and reboot each computer to make them become recognized to the workgroup. IGNORE THE COMMENT ABOUT BEING ON THE SAME DOMAIN, YOU DO NOT HAVE A DOMAIN CONTROLLER, USE WORKGROUP INSTEAD

Yes

As was stated, share folders, Drives, devices.

See if you can get the Laptop to talk with the Security system ( WEP/WPA etc ) of the Router; that will be good for the security.Be careful with the Laptop security, hopefully they are the same or similar sort of systems

Cofigure your router. Access it from your web browser, usually 192.168.1.1 address.