I was able to get an instance of System 7 running in Basilisk 2 on both my Macbook Air and Mac Mini to connect to each other using AppleTalk!
1) Basilisk 2 preferences must have udptunnel set to true
and udpport set to the same port on all Basilisk 2 instances.
2) The Control Panel Sharing Setup must have File Sharing configured and started.
3) Guest user should have Allow guests to connect checked.
Thanks
@oevl, you inspired me with your post last night.


