Through the command line:
Using rmtshare.exe (free WinTN tool available from MS that works even on Win 7)
rmtshare \\SYSTEM\Test=D:\Test /REMARK:”Test Share” /GRANT “DOMAIN\Domain Users”:Change
NOTE: You can add multiple users or groups in one command.
You can also add users with separate command lines once the share is created

To verify run (or use the GUI management tools)
rmtshare \\SYSTEM\Test

Through the GUI:
Open Windows Explorer
Go to TOOLS | FOLDER OPTIONS
Go to VIEW Tab
In ADVANCED SETTING scroll to the bottom
and ensure “Use simple file sharing” is UNCHECKED
OK out of the FOLDER OPTIONS
Drill down to the directory (folder) you want to share
Right click the directory (folder) and click PROPERTIES
Go to the SHARING Tab
Click “Share this folder”
Give it a short usefull name and add a description
Click on the “Permissions” button
Click “Add” It should default to your domain.
Add the user names or group to have access – Click “Check Names” to validate the items
Click OK once.
Review permissions for each item (ID or Group) and adjust as needed.
Remove “Everyone”
(Unless you really want anyone who can see the computer to access this.)
Click OK until you get back out of the dialogues

• To share a folder or drive (WinXP)
• Share a folder or drive (server 2003, applies to WinXP and others)
• How to disable simple file sharing and how to set permissions on a shared folder in Windows XP
• Rmtshare.exe Does Not Work with Numeric Usernames (includes download link)