Sounds like you want to create a Workgroup!
Try this on both computers:
Right-click on My Computer, click Properties
This wil open the System Properties box
Click on the Computer Name tab
Click on the Change button
You can leave your computer name alone, if you want (unless both computers have the sme name, in that case change one)
Select the Workgroup box and type the name for your workgroup (this must be the same for both PC's!) For example "WORKGROUP" is the Windows default, but I'd change it to something more personal like "BATMAN" or "COWABUNGA".
Click OK twice on each machine and reoot them both.
Now you can go through each computer and select any folders and printers you wish to share by right-clicking on them and selecting "Sharing" or "Sharing and Security" and following the prompts.
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