The cure: Set effective passwords for all users 
     
The best way to protect yourself from malicious 
users is to effectively password protect all your user accounts.  An 
effective password, according to Microsoft, is at least seven characters long and 
contains a mix of upper and lower case letters, numbers and symbols. While you 
can cut corners a bit here in the interests of memorization, make sure to use 
six or more characters and include at least some numbers and upper case letters 
in the middle of the word. By using several characters and a mix of upper and 
lower case letters and numbers, you can make your password effectively 
uncrackable to intruders who do not possess super computers capable of predicting 
the weather...  
To change 
user passwords make sure you are logged in as a user with administrative privileges 
(the first user created during the XP install process has these). 
Right click on 'my computer' and select 'manage.' Expand 
'local users and groups' then 'users.' 
Right click on each user and select 'set 
password.'
Note the ominous warning message.  If you have 
used XP's built-in file encryption to protect any of your files, you must remove 
it before you change your password or you will lose access to the files.  
Otherwise, proceed and set a secure password for each account.  

The accounts you should set passwords for are the 
administrator account, and any accounts you created during or after the 
installation of Windows.  
 
Step 2. Make sure your system is protected by a 
firewall        
The Danger:   Malicious users may locate and 
attempt to break into your computer from the Internet.  
The Cause:    All computers that communicate over the Internet 
must have a valid IP address, such as 61.232.252.6.  These addresses allow 
computers to exchange data with other computers over the 'net.  Your system 
also leaves a variety of ports open to listen for incoming data.  Ports are 
access points for certain kinds of data to enter and leave your computer.  
For example, while you are viewing this website, your computer and our web 
server are communicating through port 80, the default port for the HTTP language 
that web pages generally use.  
The 
trouble is that anyone can use freely available software like GFI's LANguard security scanner         to scan a range of IP addresses 
for computers and gather  information about these systems. If your 
computer is poorly password protected these utilities provide remote users with the 
ability to directly access your files.  

This happens because by default, many ports in your 
system are fully prepared to listen and respond to any data request from the 
Internet.  This means that your system is fully visible, the equivalent of 
wearing glow-in-the dark clothes in a blackout…