Question : How do I best implement User permissions and manage folder access when XP home edition is required?

I have volunteered and am setting up sharing on one computer across a wireless network for a shelter for the homeless on a low budget, and am trying to save them the cost of purchasing XP Professional licenses.  But I am struggling with setting up user groups and permssions on the one machine that will act as "server".  I researched and found that I could do this through safe mode where the security tab appears.  My task is this:  I just want to have 7 separate data folders on this "server" where 7 remote users can create and edit their private files without them being seen or read by the other six users.  How can I specifically make this happen in Windows XP home edition?  It does seem to me that I can't find a hack to create new user groups in Windows XP home edition.  Thanks so much in advance.

Answer : How do I best implement User permissions and manage folder access when XP home edition is required?

Might I suggest you look into getting them appropriate software through www.techsoup.org - if they are a recognized non-profit, the costs are next to nothing (The software is free, they charge a modest "administration" fee).