(optional) Users & Groups -- to add new users and groups
(optional) File Sharing Monitor -- to see who is accessing your computer
Go to Sharing... under the File menu
Click on "Share this item with other users"
Set up access permissions appropriately (allow write if you want people to be able to put things in), close window and hit Save button.
Note: name cannot be changed once it is shared. To change the name, go through the same procedure to make it non-shared, then change the name.
Select the zone (building) and double-click on the computer you want.
Click the Guest button to login as guest (or User to login as a user) and hit OK.
Double-click the folder you would like to access (check the box if you want it to come up on startup). Note: if the other computer does not have file sharing turned on, or if they have no files set up to be shared, you will not be given any choices of folders to access.
The folder comes up as an icon that can be used for file transfer (just like a floppy disk icon). Once you have set up a folder to come up on startup, you will have access to it, like a floppy, at all times -- you won't need to go through this whole procedure.
When you drag a file to the shared folder icon, it is copied on to the hard disk of that system. You can also drag files from the folder to you own system.
To stop access and shut down the connection, drag the folder icon to the trash.
Note: When the file server you are connected to logs off the system, you will get a message to that effect.
The files that are transferred in this way go directly on the hard disk of the computer, just as if they were created there. They can be modified, printed, etc.
Most of this is described in more detail in the System 7 Macintosh manual.
Groups and users can be set up to give password protection and limit access to certain folders/files.