While setting up a new wireless router network up at the farm, I had an odd bug where Windows 7 would not connect to the homegroup on the internal network. The reason seemed to be that the internal connection was set up automatically when I used ICS from the USB modem, and there was no default gateway on the new network. With no default gateway, Win7 would not allow the change of network type to 'home' (just remained as an unidentified network with public location).
Thanks to Sanoh for the insight into changing Win7 network type, and Ghost301 for his crossover cable ICS & Homegroup setup to confirm the process.