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If you’ve done some networking with Vista Home Premium you may have run into this extremely vague and frustrated error, well fret not I have a simple solution for you to make this headache go away.
This error is usually caused by a problem with the “guest” account in Home Premium (it also affects other versions of Vista) and the simplest solution is to:
1) Right click “Computer” and select “Manage.”
2) Select “Local Users and Groups” and select “Users”
3) Ensure the “Guest” account exists. If not, create it. (It should be there by default but disabled.)
4) Double click the “Guest” account and remove the checkmark from “Disable this account.” If it exists.

Now if you find that the “Guest” account is already created and enabled and you are getting this error then the solution is actually to CHECK the “Disable this account” box.
So far I’ve been unable to determine exactly why this situation exists, but consistently one of these two things has solved the issue.