The HomeGroup allows you to share resources, such as files and printers, only with those who join the HomeGroup by entering the proper password. You can still grant guests access to the network to connect to the Internet, without inviting them to join the HomeGroup.

You have a few different ways to create a HomeGroup: You can select HomeGroup in the Control Panel, you can use the HomeGroup link at the bottom left of the Network and Sharing Center, or you can click the Choose HomeGroup and sharing options link from the Network and Sharing Center console.

Regardless of how you get there, click the Create a HomeGroup button to begin the process. Select the Libraries you want to share with other members of the HomeGroup by checking or unchecking the appropriate boxes.

After you click Next to create the HomeGroup, Windows 7 will automatically generate a password, which other users will need in order to join the HomeGroup and share the resources. The password is intentionally complex to provide better security; if you wish, however, you can change it after you set up the HomeGroup, by again going to Choose HomeGroup and sharing options from the Network and Sharing Center.

Once you have joined a HomeGroup, you can click Choose HomeGroup and sharing options to reach controls for determining what resources to share from your computer, or for excluding specific files and folders that you don't want other computers in the HomeGroup to access.