Thanks for your replies... The server is stand alone in the same workgroup with the other PCs. Anyway that seems to be a problem of windows 7 home since ultimate and professional edition connect properly to win 2000 share using the same user and password which that I am using with win7 home ed. I guess that the windows 7 pc does not send the proper authentication info to the remote pc.
The solution: Registry editing for LAN manager authentication level (in Home edition this can be configured through registry)
How to do it:
1 . Open registry editor ( Start search - regedit)
2 . Browse to HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Control\Lsa
3. Create a new DWORD value with the following properties: NAME: LmCompatibilityLevel
VALUE: 1
- Restart your PC and try the connection again...