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"Your Folder can't be shared" error on Win server 2008 R2 SP1

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Hi

I recently configured 16 x Application servers running on Win Server 2008 R2 SP1. All is ruuning fine but when I try to share any folder it throws the message that " your folder cannot be shared". I tried after disabling firewall but no luck. everything is on default settings. Resultantly I cannot access any shared resource on server ie shared drive of any other server, deployed printers through windows explorer or "run" prompt. I tried via DNS name and IP both but no result. So much so if I type"\\localhost\c$" on run prompt it throws same error. However on typing  "c:" in run prompt it opens up drive !!!

Users are facing lot of issues. Please help it out.

Regards


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