That type of entry needs to be done through a direct registry edit, as it is not available directly in XP Home, as a few here have said. Do the following:
start>run
regedit
Navigate to the following key:
HKEY_LOCAL_MACHINE\System\CurrentControlSet\Control\Lsa
On the right side, look for the folloing key:
LmCompatibilityLevel
Double-click the key, and in the value field, enter 1
Click on apply/ok.
NOTE: If the LmCompatibilityLevel key does not exist on the right side, you will have to create it as follows:
Right-click an empty area in the right pane
Select New>DWord Value
Name it "LmCompatibilityLevel" (NO QUOTES)
Make sure that Hexadecimal is selected
Enter "1" in the value box (NO QUOTES)
click on apply/ok
Reboot to take affect
For a full list of available entries for this entry, see below:
0 Send LM & NTLM responses Clients use LM and NTLM authentication and never use NTLMv2 session security; domain controllers accept LM, NTLM, and NTLMv2 authentication.
1 Send LM & NTLM - use NTLMv2 session security if negotiated Clients use LM and NTLM authentication, and use NTLMv2 session security if the server supports it; domain controllers accept LM, NTLM, and NTLMv2 authentication.
2 Send NTLM response only Clients use NTLM authentication only and use NTLMv2 session security if the server supports it; domain controllers accept LM, NTLM, and NTLMv2 authentication.
3 Send NTLMv2 response only Clients use NTLMv2 authentication only and use NTLMv2 session security if the server supports it; domain controllers accept LM, NTLM, and NTLMv2 authentication.
4 Send NTLMv2 response only/refuse LM Clients use NTLMv2 authentication only and use NTLMv2 session security if the server supports it. Domain controllers refuse LM and accept only NTLM and NTLMv2 authentication).
5 Send NTLMv2 response only/refuse LM & NTLM Clients use NTLMv2 authentication only and use NTLMv2 session security if the server supports it; domain controllers refuse LM and NTLM (they accept only NTLMv2 authentication).