I remember a thread that showed you how to do this. I tried searching, but was unable to find it as well as in google. Can someone please direct me to the thread or an external site that teaches me how to do this.
As far as I'm aware its not possible. It was not XP home's intention to offer advaned networking and performance and configuration options. Thats where XP Pro comes in.and that costs over $100 more. Eitherway you get fleeced.
NTFS must be your file system, this will not work with a FAT file system. To enable "Advanced" security permissions in XP Home simply boot into safe mode, rt-click any file or folder, and now you will have the "Security" tab - just as in XP Pro! Simply make your changes and reboot into normal mode. This is very useful when you have 'limited' users on your computer and they are unable to run certain applications as a limited user - you can simply boot into safe mode, change the permissions according to each user, and reboot! The advanced tab is even there that will give you even more permission options such as inheritance, etc.
Although it is a little less intuitive, you can simply go to your command prompt - Start>All Programs>Accessories>Command Prompt. Now type "cacls" in the window (without the quotes). This gives you the ability to add, remove or modify file permissions on files and folders through the command prompt. Type "cacls /?" for help on different options and variables. You do not need to be in safe mode to use this so it makes it a little quicker than using the safe mode security tab GUI.