Storage on my local LAN only and access

I have a My Book World II Network drive (Model WD20000H2NC-00) and primarily want to store backups for the two computers on my LAN.  The LAN consists of Computer 1, running Windows 7 Home Premium, 64 bit, Computer 2, running Vista home Premium, 32 bit,  a printer using a Netgear WGR614v9 router.  All devices  are hardwired to the router. 

I want to store all my backups on my network drive and therefore have not installed MioNet.  I have installed WDiscovery and WD Anywhere Backup. 

My problem is mainly how to set up the drive to keep each user’s backup private.  The way I read WD’s instructions to save on my LAN w/o MioNet, I use the Windows networking tools and must save in a public file.  It seems that opens all files on the network drive to all users.  Is there a way to make them private?

The way to make the folders private is to goto the network storage manager and give each folder  its limitation

If you are not sure on how to access the network storage manager just right click on the my book world and left click on show device webpage if you are using XP it will say invoke