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Computers not showing up in Network ->Windows Explorer

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I do not think setting up a Domain will "fix" your current situation since a client server system is way different to a workgroup setup. A domain would give you the results you want but your present problem seems totally related to the workgroup setup. Bear in mind that to set up a Domain means you would need to buy a NOS (network operating system) such as Server 2003 or 2010 if you are going all microsoft. You cannot set up a domain using only win 7 pc's these are all "clients" and only works in a workgroup talking to one another, where as a server is a central system where a server "serves" individual clients (desktops). Carefully examine your cable connections to the ports on your switch are correct, I assume you use a dedicated switch with a dedicated router and not a combination in one box.
If you are serving more than ...say ten users, then a client server system would be best but also require a greater degree of management and slightly more expertise. I am willing to bet this problem is related to how the switch is cabled. You may need to check that you need a crossover cable between similar devices also.