Few more security settings for enhanced security

Security tab:

Enable the security tab that appears in the folder properties tab by disabling the simple file sharing that is enabled by default in windows XP. This setting applies only for NTFS partitions. FAT32 partitioned drives are not as secure as NTFS. This security tab can be used to specify restrictions on an file or a folder for a purticular user whether he can access it or not.

Disable Autorun Feature:

Some malicious software uses Autorun feature that makes any program run automatically when you insert a flash drive or a CD. You can disable autorun feature for all drives or for specific drives.

To disable autorun:
For XP Pro:

Open Run from start menu

Type gpedit.msc and click OK

The Group Policy snap in will open.

Go to Computer configuration, Administrative Templates

In the right pane, double-click System

Scroll down the list and double-click Turn Off Autoplay, in the Turn Off Autoplay Properties window, select Enabled.

From the dropdown next to Turn Off Autoplay on, select All drives and Click Ok.

Go to User Configuration, Administrative templates follow the above proceedure for this also.

For XP home users:
Go to Start, Run type regedit and press enter

Navigate to the following key

HKEY_CURRENT_USER\Software\Microsoft\Windows\CurrentVersion\Policies\Explorer.

Select the key Explorer and in the right-pane right click the value NoDriveTypeAutoRun
select Modify select Hexadecimal.Type 95 and click OK.Exit the registry editor.

If it is no present create a DWORD value NoDriveTypeAutorun an then assign the hex value

Also see firewalls and antivirus