After so many years, Microsoft finally do it right. The home networking is much more simplified and easier compared to the previous version found in other windows.

Hook up all the computers and turn them on. Windows 7 will automatically detect whether there's an available Homegroup. Joining the network is as easy as entering the password on other computers and you can straightaway begin sharing files :D

Asking for password to join homegroup

Other computers appearing on the homegroup

There is still one issue with the homegroup, it is not compatible with earlier version of windows. To share files with older windows, users still have to go through the hard way. It seems like they are taking 2 steps forward, and 1 step back.

Hopefully Microsoft will iron this out before the retail release.