Q: What is a HomeGroup?

A: Windows 7 includes a new feature called "Homegroup".  Microsoft claims a HomeGroup allows you to "Easily share the photos, music, and files on each of the PCs running Windows 7 on your home network. It's especially handy when you want to share a printer."

Homegroup allows Windows 7 computers to talk to each other, and each user gets to decide what they want to share. 

Maybe so - but the convenience comes at a price.  Homegroup slows down the transfer of data across the network by up to 20% in my tests.  No thanks!  If you disagree, and think the features of Homegroup are worth it, then I will direct you to this Microsoft article that will show you how to install and configure HomeGroup.

When you install Windows 7 it gives you the option to create or join a HomeGroup.   Unless you are really using the features - sharing photos, music, etc. with other computers on your network, I strongly suggest you turn HomeGroup off!  Just go into Control Panels -> HomeGroup and then click "Leave the HomeGroup."  Then, go to Control Panels -> Network and Sharing Center -> Changed Advanced Sharing Settings.  In the next window, choose "Enable File Sharing for devices that use 40 or 56 bit encryption" and "Use user accounts and passwords to connect to other computers." 

After making these changes, you can still share files and printers easily, just as in previous versions of Windows, but without slowing your computer down by 20%.

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