Your firewall should not allow anything you're not actually using. File and print sharing should only be allowed if you actually use it on the network - and then only to allow connections from/to your LAN. Are you using remote assistance? If not, switch it off at the firewall.
XP's firewall is a software firewall - i.e. not a dedicated bit of hardware, and it only can protect the PC on which it is installed. Hardware firewalls typically make a greater level of security possible, although not against attacks within your LAN (i.e. trojans).
Any firewall, badly configured, is as useful as a chocolate fireguard.
No security is "sufficient", in the sense that any system can be hacked, given enough time and skill. Your main aim is to present as difficult a target as possible to crackers, so that they will simply move on to an easier target. You also need to ensure that your computer is unattractive to them in other ways - no big signs on the internet saying "lots of yummy financial data thisaway!" You may chuckle, but corporate cracking is fairly big (underground) business.