Windows 7 pro client cannot access folders on server 2003 domain server

Question

I added a windows 7 64 bit client to a server 2003 32 bit domain 3 weeks ago and file sharing was working fine until today, 5/4/12. Now, when trying to access shared folders that reside on the server,
I get the following "access denied" message:
[…folder…] is not accessible. You might not have permission to use this network resource. Contact the administrator of this server to find out if you have access permissions.
The user name could not be found.
Strangely enough...
The windows 7 client
can open shared folders that reside on the XP clients in the domain
All the XP clients in the domain can access the server 2003 folders
All the XP clients and the server 2003 machine can access shared folders and printers on the windows 7 client.
The windows 7 client can ping the server 2003 machine and vice versa
I can “see” the server in my network list, but when I click on it, I get the same “access denied” message listed above.
So... the only problem is that the windows 7 client cannot access folders that reside on the windows server 2003 machine. There must be some sharing setting that got changed
by a recent windows update.
Here is what I have done/verified so far on the windows 7 client:
In advanced sharing settings for Home/Work, Public and Domain profiles:
network discovery is enabled
file and print sharing is enabled
use user accounts and passwords to connect to other computers is selected (I also tried allowing windows to manage homegroup connections instead, but the problem remained.)
40 -56 bit encryption is enabled
In “gpedit.msc” Local Policies/Security Settings:
enabled the following policies:
Network access: Allow anonymous SID/name translation
Network access: Let Everyone permissions apply to anonymous users
disabled the following policies:
Network access: Restrict anonymous access to Named Pipes and Shares
Network access: Do not allow anonymous enumeration of SAM accounts
Network access: Do not allow anonymous enumeration of SAM accounts and shares
What am I missing? Are there policies on the server that need to be adjusted?
Please help! My business is crippled if I cannot access server files from this workstation. Thank you in advance.

Answer 1

As this thread has been quiet for a while, we assume that the issue has been resolved. At this time, we will mark it as ‘Answered’ as the previous
steps should be helpful for many similar scenarios.  <o:p></o:p>
If the issue still persists and you want to return to this question, please reply this post directly so we will be notified to follow it up. You
can also choose to unmark the answer as you wish.  <o:p></o:p>
In addition, we’d love to hear your feedback about the solution. By sharing your experience you can help other community members facing similar
problems.  <o:p></o:p>
Thanks!<o:p></o:p>
Arnav Sharma | http://arnavsharma.net/ Please remember to click “Mark as Answer” on the post that helps you, and to click “Unmark as Answer” if a marked post does not actually answer your question. This can be beneficial to other community members reading
the thread.