Does this product work with XP?

Rev.F, you’ve got a lot of things going on.

First, the reason it says you only have 60GB is because your PC has connected to the MBL via WebDAV, not via network shares.

http://community.wd.com/t5/My-Book-Live/WebDAV-Primer-Microsoft-vs-WD-My-Book-Live-etc/m-p/576975/highlight/true#M23535

Note also that all these issues are the responsibility of your PC and are not the “fault” of the MBL.   

I’ve already answered why your Public shares work and your private ones do not.

It’s a MICROSOFT limitation, and it’s the same on ALL versions, not just Windows 7.

Rev.F wrote:

I am very dissapointed with this product.  If these are PC or XP limitations (I seem to be able to access things fine through my phone) then this should be explained on the box

Why?  It’s not an issue with WD’s product.  It’s an issue with your PC.

The MBL will happily accept arbitrary logins from any number of systems and/or accounts.  It’s a Microsoft limitation that allows you to only use one.

Again, if you’re not able to use the MBL according to your needs, I would imagine you’ll have the same issues with ANY vendor’s NAS, as the problems aren’t with the NAS, they’re with your computer.