File Transfer Wizard not working on both computers

Hi,

I just set up a new computer - C drive is shared and visible to my old

computer. Both run XP SP2 w/ all the updates.

--On my old computer the FT Wizard seems to run fine and asks me where to

tranfer all the files. It selects a slew of applications and file types it

wants to transfer. I can choose the C: drive of the new computer over my

network and even create new folders on the new computer.

--On my new computer the FT Wizard won't get past wanting me to make a CD

for the Wizard to install on the old computer. FT Wizard is already installed

on the old computer, yet the new computer gives me no option to search for

files to transfer the way my old computer does.

Questions:

1) Is this telling me that I actually have to copy all the files on my old

computer from their current locations into another place, e.g. create another

directory on my old computer and copy them from there to my new computer?

What if I don't have space for that?

2) The old computer's FT Wizard is only transferring my account information.

What about the other user account? Do I have to log in as the other user and

repeat all of this?

3) If so, how do I differentiate common files (e.g. photos) from

user-specific config files (e.g. Internet Explorer favorites)?

Thanks,

Robert