If you have two Windows XP computers in your house and want to connect both to the Internet, you need to use Internet Connection Sharing (ICS). ICS is used when you do not have a network hub or router to stream all of your traffic through. With one computer connected via the modem, you can share that Internet connection through an Ethernet cable.
Modemed Computer (Host)
Step 1
Connect the Ethernet cable from the network card on one computer to the network card on the other computer.
Step 2
Click -- on the computer connected to the modem -- "Start," then "Control Panel." Click "Network and Internet Connections," followed by "Network Connections." Right-click your Internet connection and click "Properties." Click "Advanced."
Step 3
Click "Allow other network users to connect through this computer's Internet connection." If you are using dial-up, click "Establish a dial-up connection whenever a computer on my network attempts to access the Internet." Click "OK."
Step 4
Click "Yes" to complete the setup.
Other Computer (Client)
Step 1
Click "Start," then "Control Panel." Click "Network and INternet Connections" and then "Network Connections."
Step 2
Right-click "Local Area Connection" and click "Properties." Click "Internet Protocol (TCP/IP) and then "Properties."
Step 3
Click "Obtain an IP address automatically" and then click "OK." Click "OK" again. You can now connect to the Internet.
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- Microsoft: How to configure Internet Connection Sharing in Windows XP
