To resolve this issue go to; 

Start > Run > secpol.msc (security policy management console)

From here, navigate down the path to;

Security Settings > Local Policies > Security Options

From here scroll down to “Network security: LAN Manager authentication level”

By default Windows Vista sets the policy to "NTVLM2 responses only".

You need to change this to

“Send LM & NTLM - use NTLMv2 session security if negotiated”

From here be sure to delete any data that seems to be in the folders and start from scratch

Thankyou to Builderau

http://www.builderau.com.au

And Brian Jepsons

http://www.jepstone.net

for the info