System and method for enabling file transfers executed in a network environment by a software program

The method of the present invention provides a means to exchange files between users in a network environment. This method includes the steps of first executing a software agent on a user's computing system. An additional copy or version of this software agent is executed on an additional user's computing system. These software agents establish a connection from their respective computing systems when their respective computing systems log in to the network environment and network based computing system. When this connection is made the status of their respective computing systems and availability of shared files is provided to an agent server. The agent server, executed on the network based computing system, directs the software agents to establish direct connection between their respective computing systems in response to file requests from various users.