Files sharing problem

I have set up a network between my desktop and laptop. I am using Windows XP
Home Edition. I was able to setup sharing on the laptop. The problem I’m
having is when I select “Sharing and Security� on the Desktop then click
“Share this folder on the network� and then hit “OK� I get the following
error message: “An error occurred while trying to share “name of folder�. The
Server service is not started. The shared resource was not created at this
time.�

So it seems simple enough, go to services.msc and start the server service.
Here is my real problem. If I try to start the Server service, I get this
error message: “Could not start the Server service on Local Computer. Error
126: The specified module could not be found.�

Any suggestions.