Can't set up a Homegroup on this computer, error 0x80630203

Has anyone had this problem? A google search seems to indicate that this has something to do with the "peer name resolution service" failing to start.  The machine that gets this error has two network adaptors, and shares the internet(ICS) with the rest of my home network, it is also an upgrade from Vista Home Premium.
Jon

I know this is a really old discussion. I thought it might help somebody anyway, so here goes.
Even though I don't use Homegroup myself, I got tired of seeing the Peer Networking errors in the event logs.
It seems that error code 0x80630203 indicates a problem with the file permissions in one or both of the following directories (for Windows 7):
C:\Windows\ServiceProfiles\LocalService\AppData\Roaming\PeerNetworking
C:\ProgramData\Microsoft\Crypto\RSA\MachineKeys
I have written a small batch file to automate the commands needed to fix my computer and hopefully someone else's. This file should be run from a command prompt with elevated privileges. Or right click in Explorer and choose "Run As Administrator".
Just copy and paste the following lines into Notepad and save with your choice of filename and the extension .bat
@rem *************************** Start of Batch File *************************
@rem This batch file will hopefully fix one of the possible problems with Peer Networking
@rem Step 1: stop the services that might be using the files and directories we need to work on
Net stop p2psvc
Net stop pnrpsvc
Net stop p2pimsvc
@rem Step 2: take ownership of the directories
takeown /f C:\Windows\ServiceProfiles\LocalService\AppData\Roaming\PeerNetworking /r /d Y
takeown /f C:\ProgramData\Microsoft\Crypto\RSA\MachineKeys /r /d Y
@rem Step 3: grant Everyone full access to the files/directories involved
icacls C:\Windows\ServiceProfiles\LocalService\AppData\Roaming\PeerNetworking /t /c /grant Everyone:F
icacls C:\ProgramData\Microsoft\Crypto\RSA\MachineKeys /t /c /grant Everyone:F
@rem Step 4: start the Peer Networking services
Net Start p2pimsvc
Net Start pnrpsvc
Net Start p2psvc
@rem Step 5: the icacls commands above open a hole in the security of these files/directories
@rem         need to remove Everyone from the ACLs
icacls C:\Windows\ServiceProfiles\LocalService\AppData\Roaming\PeerNetworking /t /c /remove Everyone
icacls C:\ProgramData\Microsoft\Crypto\RSA\MachineKeys /t /c /remove Everyone
@rem will pause here so I can see if there were any error messages
pause
rem **************************** End of Batch File *******************
Be sure to run the HomeGroup troubleshooter afterward and let it fix the permissions.
It is also possible that you may have to delete everything in the 2 directories mentioned above. Doing so may (probably will) delete your HomeGroup if you have one.
I hope this helps someone out
Roger Watson

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