I wasn't sure whether to put this here or in "Networks". Apologies if I'm wrong!

I'm trying to get my head around "Bypass traverse checking" in XP Local Security Settings and "Traverse Folder / Execute File" in Special Permissions and how they interact. Here's the test setup:

2 PCs connected via a switch. One has a shared folder and contained text file. There's no firewall and I can happily browse the contents of the shared folder as well as open the text file across the network. Both PCs have the same User Account and Password and I log into the client using that account.

I've tried several combinations of the configurations ("Bypass traverse checking" and "Traverse Folder / Execute File") to prevent my listing the folder contents but still be able to access the file using it's UNC path (\\RemotePC\Share\test.txt) but nothing seems to work. Either I have no access to the text file (despite knowing it's exact path) or I can see all the contents of the shared folder. I've tried rebooting both PCs after I've changed any configurations but that didn't make any difference.

Can someone give me some tips? I'm pulling my hair out!