Your problem sounds like a rights issue. Make sure the workstation user has full administrative rights to the softrak directory on the K: drive. I would also refer you to Ralph Allan's posting on setting up a peer to peer network

http://www.softrak.com/cgi-bin/ultimatebb.cgi?ubb=get_topic&f=1&t=001300

which can help you determine if your installation was performed properly. You can cut and paste the above URL or search our forum for the topic peer to peer installation.