ATV2 File Access with no Internet

I am having issues accessing files on my server with XBMC on my PC and on my ATV2 when the internet is down and my network is up. I am able to access the files browsing and playing them with WMP from PC to PC, but XBMC won't see the files (it just times out). I am using a cisco router and a netgear 8 port switch. It doesn't matter if I have everything running through the switch or everything through the router or both. I don't understand why XBMC has to have the internet active to work.

Any ideas?