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A cheap & powerful way to transfer files is to get a router that can be used to share a DSL or cablemodem internet connection with up to 4 computers using standard network cables. BTW you actually don't need the internet connection to use one of these boxes which can be bought for $10 - $50. Or get a wireless router for about $75 if you wanna do some wireless networking - they also have 4 wired ports.
Then use XP to set up a home network. It takes a bit of diddling to get this working, but it's very slick when all done. Then you designate some folders, your desktop, or drives as shared on the network, and you can drag and drop files between computers.
I use a wireless router to transfer files every day between my laptop and main desktop computer. And if a friend comes over with a laptop, he can just plug in to the router with a $5 cable and surf the net without any special setup. Some of my friends have wireless routers and I can take my laptop to their places and surf wirelessly as I've got the wi-fi key and am authorized.
Another way to transfer files is with an external USB hard drive or flash ram pocket drive. Very slick and easy to use. Just plug the drive into a USB 2 port (USB 1 might work, but slow) and the drive is auto set up and can be used just like a normal drive. Drag files to it, then plug the drive into another computer with USB, and grab those files.
Another way to move files is with CD or DVD burners. There's software called InCD from Nero that works with rewritable disks (CD-RW, DVD-RW etc) that makes it possible to treat a DVD drive like a hard drive. The write-once disks CD-R, DVD-R, DVD+R etc are cheaper but less flexible but good for backing up stuff like WAV and MP3 files that will not be updated.
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