I’ve got this error in Windows XP when trying to create a share on one of the folders. There isn’t much on the net regarding this issue, so it took me a while to figure out how to fix it.
Solution is simple.
Right click on My Computer, then click Manage:
Then go to Services:
Start service called SERVER
SERVER service supports file, print, and named-pipe sharing over the network for this computer. If this service is stopped, these functions will be unavailable. If this service is disabled, any services that explicitly depend on it will fail to start.
Anyhow, starting it solved this issue for me and I hope it helps you as well.