setting up a secure network, got hacked
 

Hey guys, I want to set up a "local area network" with 2 computers on it, basically so i can access and modify files on both computers and print, without needing to actually leave me current one"

sounds simple enough, but when I go to "share" my drives, it talks to me about security risk, and how other people from the internet can access my files or some bs like that.

I disregarded it, and three days later my WoW account got hacked.

What I want to know is, how can i have a very secure "complete permissions" network between 2 computers and a printer, so that others cannot access my files.

i know a firewall can solve this, but I've had trouble in the past. is there a setting in windows or something?

help the lowly n00b!! thanks

Yes, password protecting the share would be advisable.

Actually if you go into "Safe Mode" you can set complete user permissions, and make folders only accessible to certain specific users or groups. I'm assuming that would solve at least some of these problems.

I would assume that seeing as you have two computers networked, that you're doing it through a router? Every router I've known has a hardware firewall built-in, and they're way better than any software firewall I've ever used.

I sincerely doubt that sharing your files between two computers is the reason for your WoW hack, but it's still good to be safe. If you're not behind a router, you could always enable the Windows Firewall [there's a control panel applet for it,] or download one such as NOD32 or Kaspersky.

No, it's possible to do it via cross-over LAN cable. You don't necessarily have to use a router.

That's nonsense. There is no such thing as a "hardware" firewall.
The router also has a processing unit and there is a firewall component stored inside the BIOS or other non-volatile storage memory, which is then run on the PU.
Needless to say this sort of firewall isn't as mighty as a software firewall like iptables would be (e.g. you can't update the firewall component without replacing the rest of the firmware). What you really want is a dedicated machine with a stable iptables running and someone with the experience to configure iptables.

If you want a secure network then create an OpenVPN tunnel, or use SSH/SCP for file transfers. Windows is unsecure by design because it confuses the average user who just want's to "use" his system. If you really want to have a (rather) secure system you need to pay a price. There is no software that once installed miraculously gives you an un-crackable system.
You need to check for known security bugs, regularly update you system - especially internet services which communicate with the net. Check your logs for suspicious entries. Encrypt you files, analyse email attachments prior to opening them, manually update applications that are not handled by the windows installer (because even them can pose a security threat to the system) and don't use unsecure communication when talking to other people on the net. That involves using unencrpted IRC, ICQ, email when chatting about passwords, etc. - anything that could be used to break into your system.

how would i password protect the share?

Set it so that it can only be accessed by a certain user account, and then assign that account a password.