When trying to access a network share on a Mac OS X network share supporting Windows Sharing Service from a Windows 7 PC you may be thrown with errors like
Network path not found error (0×80070035)
or go in cycles prompting for logon passwords.
Windows 7 by default will only use NTLMv2 for authentication, which is not supported by Mac OS X's Windows Sharing service and can also be caused by the new "Minimum Session Security for NTVLM SSP based Clients" security feature found in Widows 7 and Windows Server 2008.
To workaround this problem,
1. Click Start - search secpol.msc, right-click and choose "Run as Administrator"
2. Click "Local Policies" and then "Security Options" in the leftpane.
3. In the rightpane, locate "Network Security: LAN Manager Authentication Level" in the list. Double-click and change the setting from "Send NTMLv2 response only" to "Send LM & NTLM - use NTLMv2 session if negotiated" and click Apply and OK
5. Now, double-click on Network Security: Minimum session security for NTLM SSP Based (including secure RPC) Clients and uncheck "Require 128 bit encryption" and click OK.
This should resolve the problem.
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