First of all, you must have a user with password on your PC. Second, you must share a folder where you have media files ( rightclick -> options -> sharing and security).
Now, you are ready to use LAN mode. If you have dynamic IP in the network, then it's better to use PC's name as server and not it's IP.
So, in server settings input:
servername: 192.168.XXX.xxx if you have static IP OR MyPCname if dynamic IP.
username: your PC username
pass: your PC username's password
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