How to hide the "Files stored on this computer" from My Computer window?

You can show or hide the "Files stored on this computer" section using TweakUI for Windows XP. TweakUI can be downloaded from the following Microsoft site:

TweakUI v2.00 for XP / v2.10 for XP SP1 and above

• Install and run Tweak UI.
• Click My Computer section in the left
• Uncheck Files stored on This Computer option
• Click OK