I'm a little late to this conversation, but here is my problem, my fix and my 
comment...
 I updated from Guitsy to 8.04 LTS on my desktop .... I could not hook up with 
my XP laptop in Gutsy (shared files could not be displayed on either computer) 
but when i upgraded, i could instantly see all shares from each computer on the 
other.... BUT, no apps needing Administrative password would work!!

etc/hosts: 127.0.0.1  localhost
                 127.0.1.1 frank-desktop.mshome

 After searching many web sites, i found some fixes... the on that
worked was deleting the .mshome from thw second line using network
tools/hosts...

now, all works well and i can still "network" fully!! WIERD!!!

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Missing hostname in /etc/hosts causes sudo to fail
https://bugs.launchpad.net/bugs/19775
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