My network is naked in Win98VM under XP

I just installed Win98 into a VM under WinXP. The hypervisor I'm using is Microsoft VirtualPC 2007. I was surprised to find this out:

It seems my entire network is completely naked within this WM. I could see my router's name and even access a WD HDD connected to the router!

All this from a fresh install of Win98 with no settings touched nor altered. It seems my entire network is so naked, it's almost scary to think what someone could do with very little computer knowledge (they just install Win98 to a VM) can do if they just gained access to my WiFi password!

So such info is found on the host OS when I click on My Network Places. How can I view the same kind of info under XP? I've tried to "Add new network place" but the WD MyLivebook network HDD didn't even show up!
 
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Tried everything I could to access our WD networked HDD under XP. Let's just say it's impossible. It doesn't show up when you browse for network places. This HDD doesn't belong to me btw, but I think one of our family member had to install a certain software to access it under Win7.

Anyways, it's cases like these that illustrate the superior security of XP over say Win98 or even Win 2000 (I installed Win2000 to a VM and it was as easy to access the entire network's resources as Win 98!) If a virus or trojan manages to infect an XP system, it has less chances to do as much damage as infecting a Win98/2000 system!
 
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