Permission Problems

I have a PC which we use as a “server”. Actually just file sharing. It is running XP Pro. On this machine is a “Tools” directory which is shared to “everyone”, and that works fine.
There is one directory inside “tools” which I wish to restrict to a couple users on the LAN. The users are running XP Home.
I cannot get anything other than “everyone” to work as a share.
Believe me I have tried everything in the way of permissions, inheriting, checked all the services that apply.
Is this an issue between XP Pro & XP home when it somes to perissions?