Microsoft addressed this interoperability issue with the LLTD client shortly after Vista was released. See my post above if you're still having issues getting Vista and XP to work together. I use Vista Business Ultimate at home, my wife's and kids computers are XP. We all see each others shared drives and printers just fine with the LLTD client installed on the XP machines.
i am going to keep your post in case i have to network with a vista in the future. i hate calling microsoft it is a hit or miss. you may get a good one or not. you would think they would have people who knew.
You are so right. This is the key. If you don't do this Vista will not share with XP!