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This is just an update to the last post. Since your earlier advice that “the shared phonebook is no different than a shared drive and does not relate to the COM issue” or other security issues, I gave the shared phonebook a drive letter on the XP client so that when the computers boots, it would register the location. In addition, I also deleted the shared phonebook (located on the server) even though it was working with all the WIN2K clients. I created another shared phonebook (and did not make it read only). With the above changes, the phonebook is not creating a problem any longer. The send window dialogue no longer freezes.

Also, while i do not know if this was an issue but as an experiment, I removed all the changes related to the security settings that are supposed to be for the Host computer – I had originally applied all the host security changes to the XP client which presumably was unnecessary (but not sure if created the problem). I also turned the Windows firewall off. the above changes seem to work. When I turned the WIN Firewall on – (with the controller as an exception) I ran into a problem with connecting with the Host.

I hope the above information is useful. Thank you again for your help.