Networking XP and ME

Here's the thing - I have a 3 PC network.

Machine 1 (Win XP Home)
Machine 2 (Win ME)
Machine 3 (Win XP Pro)

I am having problems with Machine 1 and 2.

Machine 1 can see and view files on Machine 2 but can not copy stuff over the network. It can see Machine 3 OK.

Machine 2 can see and copy files to Machine 3, but not to Machine 1 - can't even see Machine 1.

Machine 3 can see anc copy files to both Machine 1 and Machine 2.

It seems to be something to do with ME and XP Home pc's
When i try to connect/view the network for Machine 1 is says DEVICE NOT READY but it can view and see machine 2 OK.
Machine 1 can see Machine 2 also - whgre's the sense in that?

There is no firewall or else running?
Any one got any idea's?

Please Help.