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I'm trying to install the optional Networking Services package Peer-to-peer but it gets partway through the install, and then reports that an "extended error has occurred". The install gets as far as "Completing configuration of Management and Monitoring Tools..." before the error occurs. What does this mean?

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Most probably it is that IPv6 is not installed. It is mentioned about half way down this article, Introduction to Windows Peer-to-Peer Networking

IPv6 and NAT Traversal

Windows Peer-to-Peer Networking uses IPv6 as its Internet layer. IPv6 was chosen because it restores the end-to-end computing model to networking. With IPv6, there are no issues with address shortage that require the use of Network Address Translators (NATs).

"extended error" also has to do with Net Logon. Have a look at http://support.microsoft.com/kb/262916

Also the number of connections may have been exceeded (XP pro = 10, XP home = 5). try disconnection all sessions and the trying again.

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