ok - win7 was a little weird when it comes to networking
out of all the solutions (running DC++ servers instead of using windows sharing, etc) I finally got win7 to network
ok, the most essential part is to go into your network settings window, and click on "choose homegroup and sharing options" - that is the KEY to get it to work
go through the steps, and it will give you a SERIAL NUMBER/KEY - use this on the 2nd PC when it asks you to do so (it will know if they are already connected by a lan cable)
enter the key, and voila!
now you just need to right-click on a folder > properties > sharing tab > click "advanced sharing" button and then tick "share this folder"
bam - done!