Have a look here for good tips on home networking;
I set up P2P networking on Win98 to WinXP frequently with no problems,
1, Get the NIC's working on both machines, ping the loopback address 127.0.0.1 to ensure that the TCP/IP stack is working,
give them static IP's in the 192.168.0.X range,with a subnet of 255,255,255,0 and the same workgroup name.
2, Try pinging from both PC's, if one PC can ping the other, then you have a connection, if not check the settings on the Hub, it may be switched for a crossover cable, try cycling the power on the hub, try a crossover cable to eliminate the hub
3, Use the Wizard in XP for setting up a small/home network
This usually does the trick,
You can get both PC's to share one modem by giving the second PC a default gateway with the connecting PC's IP address and name, just select "Auto detect settings" in Internet Explorer on the client
Frank Farrell
Network+ MCP