Ok, here is the dhcp_pnp.log file. I couldn't fine the other one you were talking about, /etc/dhcp3/dhcp.log. Not there, as far as I can tell.
When I got the first "Device recognized" message when I first got the core up and running, it said it found the other computer. Did not prompt for individual shares, and I should have at least two or three folders (movies, audio, backups).
00 Fri, 02 Jan 2009 10:20:50 -0600 DHCP : MAC '00:50:8d:7e:47:23' IP '192.168.80.253'
00 Fri, 02 Jan 2009 10:20:50 -0600 Device already exists: 30
00 Fri, 02 Jan 2009 10:20:54 -0600 DHCP : MAC '00:50:8d:7e:47:23' IP '192.168.80.253'
00 Fri, 02 Jan 2009 10:20:54 -0600 Device already exists: 30
00 Fri, 02 Jan 2009 10:21:02 -0600 DHCP : MAC '00:50:8d:7e:47:23' IP '192.168.80.253'
00 Fri, 02 Jan 2009 10:21:02 -0600 Device already exists: 30
00 Fri, 02 Jan 2009 17:31:06 -0600 \n\n\n\nDhcp-Plugin Process Started
00 Fri, 02 Jan 2009 17:31:06 -0600 Dhcp-Plugin Started
Keep the good info coming, colinjones! I can feel the solution is just around the corner!