Problem opening Office files

I recently replaced my laptop that was running Windows XP with a new laptop running Windows XP Pro. Most of my data files are stored on my PC that is running Windows ME. The two computers are networked using a Linksys router and switch. I am not having any problem sharing my cable modem connection or sharing the printer, which is directly connected to the PC. From the laptop, I can also see all of the files in the My Documents folder on the PC, which is marked for sharing. However, from the laptop I can't open any Office files that are stored on the PC. When I try to open an Word document, I get an error message that the path is wrong. When I try to open an Excel file, the Excel program opens but no worksheet appears. I am, however, able to open image files stored on the PC as well as audio files stored on the PC. These are also stored in the My Documents folder.

I can move or copy Office files from the PC to the laptop and then open them, but I can't open them by double clicking on the file name. I have Office 2003 on the laptop and Office 2000 on the PC. My old laptop had Office XP. I never had this problem with the old laptop.

Has anyone else had this problem?