setting the NTFS ACL are available in windows xp home in safe mode, so remove "All" the folders/files/drives it is real.
The catch is the lack of winxphome snap-in secpol.msc, where in your case you should change the parameter "Network access: model sharing and security for local accounts" to classic. Can look for a solution to change this setting directly in the registry?
If the balls have access to Everyone and have a folder on drive "system"+"admins"+"Users"(without "All"), using classical models(when asks login+password) must submit a request, although in the case of a home may raise an error(no access to the resource).