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Local workstation accounts won't validate to the server

Regarding a question posed on August 26, Can I get away with not enabling Active Directory?, I tried your solution, which was to NOT install Active Directory and set up local accounts on the server against which to validate. I tried this but I couldn't figure out how to get other workstations to validate against anything other than the local workstation accounts. How do I tell the local workstations to validate against the server instead?
In the configuration you describe, you must create local user accounts on the server and the individual workstations using identical credentials (username and password). When your workstations browse to server resources through UNC mappings or My Network Places (assuming they have been granted appropriate), they will pass the same credentials to the server that they used to log on locally to their workstations. This solution is more labor-intensive than using Active Directory's centralized account database, but will allow your local workstations to access server resources.

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