Why do I get "Connection failed" when trying to connect to Lion?

One of our two Macs is running Snow Leopard, the other, Lion. I can connect from Lion to Snow Leopard OK, but not the other direction: when I try, I get "Connection Failed." I can connect as guest however. Ive run Disk Warrior on both machines. No change in behavior. Any one else experiencing this?

Solution is here: https://discussions.apple.com/thread/3197723
Go to System Preferences > Sharing > Options...
Unshare your home folder and then you can connect. Apparently Lion shares your home folder by default.
Worked for me.

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