Windows 7 Firewall
Windows 7 Firewall is the location where you
control and configure firewall settings. A firewall is a
virtual line of defense against unwanted computers or
connections trying to break into your computer through your
network.
The Vista firewall allowed you to choose
whether you are on a public or private network.
With Windows 7, you have three choices - public network,
home network or work network. The two latter options are
treated as private networks.
If you select the "home network" option, you can set up a
Homegroup.
In this case, network discovery is automatically turned on
so you will be able to see the other computers and devices
on the network and they will be able to see your computer.

Computers that belong to the Homegroup can
share picture, music, video and document libraries and can
share hardware devices such as printers.
If there are folders in your libraries that you do not want
to share, you can exclude them.
If you select "work network," network discovery is on by
default but you would not be able to create or join a
Homegroup.
If you join the computer to a Windows domain (via Control
Panel | System | Advanced System Settings | Computer Name
tab) and are authenticated to the domain controller, the
firewall will automatically recognize the network as a
domain network.

"Public network" is the appropriate
selection when you are connected to a public wi-fi network
at an airport, hotel or coffee shop or using a mobile
broadband network.
Network discovery will be turned off by default so that
other computers on the network can not see yours and you
cannot create or belong to a Homegroup.
With all network types, by default the Windows 7 firewall
blocks connections to programs that are not on the list of
allowed programs. Windows 7 allows you to configure the
settings for each network type separately.
With Vista, even though you had profiles for both public and
private networks, only one of them was allowed to be active
at a given time.
If your computer happened to be connected to two different
networks, you were out of luck. The most restrictive profile
got applied to all connections, which meant you might not be
able to do everything you needed to do on your local
(private) network because you were operating under the rules
for the public network.
With Windows 7 (and Server 2008 R2), a different profiles
can be active for each network adapter. The connection to
the private network is subject to the private network rules
while traffic coming to or from the public has those rules
applied.
in Vista when you created firewall rules, you had to list
port numbers and IP addresses individually. Now you can
specify ranges, which shaves time off of the performance of
this common administrative task.
You can also create connection security rules that specify
which ports or protocols are subject to IPsec requirements
right there in the firewall console, instead of having to
use the netsh command. For those who prefer the GUI, this is
a handy improvement.
The connection security rules also support dynamic
encryption. That means that if a server gets an unencrypted
(but authenticated) message from a client computer, a
security association can be negotiated "on the fly" to
require encryption, making for more secure communications.
The Windows 7 Firewall refines the much-improved firewall
that was included in Windows Vista, and brings its "hidden"
advanced features out into the open.
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