Windows cannot setup a homegroup on this computer.

Hello,

You may check if all the below provided settings are enabled properly -

Step 1:
Check for the workgroup -

a. Open System by clicking the  Start button, right-clicking  Computer, and then clicking  Properties.
b. The workgroup name is displayed under C omputer name, domain, and workgroup settings.

If required change the settings for the workgroup accordingly. Refer to eth below link for assistance -

http://windows.microsoft.com/en-US/windows7/Join-or-create-a-workgroup

Step 2:

The network location might not be set to Home. HomeGroup only works on home networks. To change your network location, follow these steps:
a. Open Network and Sharing Center by clicking the  Start button, and then clicking Control Panel. In the search box, type network, and then click  Network and Sharing Center.
b. Click  Work network or  Public network, and then click Home network.

Step 3:

Network discovery is turned off. To turn on network discovery, follow these steps:
a. Open Advanced sharing settings by clicking the  Start button, and then clicking Control Panel. In the search box, type network, click  Network and Sharing Center, and then, in the left pane, click Change advanced sharing settings.
b. Click the chevron to expand the  Home or Work network profile.
c. Click  Turn on network discovery, and then click  save changes. If you're prompted for an administrator password or confirmation, type the password or provide confirmation.

You may also refer to the below links if needed -

http://windows.microsoft.com/en-US/windows7/Why-can-t-I-connect-to-other-computers

http://windows.microsoft.com/en-US/windows7/Why-can-t-I-see-other-computers-on-my-network

Hope this helps.

Thanks,
Meghmala – Microsoft Support

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