XP Home and Permissions

I have XP Home version and I am using NTFS. I have another computer on the network (also using XP Home and NTFS) in a workgroup environment. How do I enable permissions? I cannot figure it out, I’ve looked everywhere — I have MS File & Printer Sharing enabled but I’d like to practice setting permissions. Is it because network environment is a workgroup and not a domain? And if so, would creating a domain “enable” permissions? Thanks for you help.