In terms of Network Locations and the category / group-by views, "Internet" merely means a network or network adapter having Internet access - a gateway to the Internet. It is not an indication of whether you are sharing anything with the Internet.
If it says "Local Network" only this usually merely means a network or network adapter with no gateway configured.
With more recent versions of Windows it also says this if certain DNS lookups and web requests to specific MS-controlled DNS server and website are being blocked. Windows uses this to determine what to say in Network and Sharing Center and does a balloon pop-up if it thinks you need to log onto a captive portal.
-----
To do File and Print sharing with the Internet, one would have to change the scope of the Windows built-in firewall rule for "File and Print Sharing" from the default "Local subnet only" to the Internet / anywhere, but also open a port in your router firewall, inbound towards 445/tcp as a minimum.
In other words, since we first moved from dial-up modems (where File and Print Sharing could be found enabled on any new dial-up connection unless you unticked it, and there was no firewall on the modeml) to the situation where there is a firewall on both the router and XP SP2 or higher, it is pretty hard to do by accident.
Note that one still needs to be aware if File and Print Sharing is enabled on a wireless interface if connecting to an unsecured or untrusted access point.
prompt $P - Invalid drive specification - Abort, Retry, Fail? $G
prlzx on iDNET: ADSL2+ / 21CN at ~4Mbps / 700kbps with IP4/6
Edited by prlzx (Wed 29-May-13 15:36:03)