I'll assume that you have the necessary hardware: a network interface on
each machine and either a crossover cable or a hub connecting them.
1. On both machines, in Control Panel\System, on the Network Identification
tab, give each machine a unique name and make them a member of the same
workgroup. If you change these items, you'll have to restart the machine.
2. On both machines, right-click My Network Places and left-click
Properties.
3. Right-click on the Local Area Connection. (If there is more than one,
click the one for the network interface for your LAN.) Left-click
Properties. The Local Area Connection Properties dialog box appears.
4. Make sure that these items are installed:
a. Client for Microsoft Networks
b. File and Printer Sharing for Microsoft Networks
c. Internet Protocol (TCP/IP)
If any of these items are missing, click the Install button to install
them.
5. Click Internet Protocol and then click the Properties button. Its
Properties dialog box will appear.
6. On both machines, click the radio button next to "Use the following IP
address". Assign one machine the address 192.168.0.1 and give the other
192.168.0.2. The subnet mask will automatically be filled in if you press
the tab key, but it should be 255.255.255.0. It is not necessary to put
anything else in the other fields.
7. Click the Advanced button and then the WINS tab on the Advanced TCP/IP
Settings dialog that will appear.
NOTE: If you plan to use Internet Connection Sharing, skip steps 5 through
7. The Internet Protocol Properties for machine (the "client") which will
connect through the other (the "server") should be set up to "Obtain an IP
address automatically" and "Obtain DNS server address automatically".
8. If you will not be using Internet Connection Sharing, on both machines
click the radio button next to "Enable NetBIOS over TCP/IP." If you will be
using Internet Connection Sharing, do this only on the "server". On the
"client", use the "Use NetBIOS setting from the DHCP Server".
Click the OK buttons.
If you now double-click My Network Places\Computers Near Me, you should be
able to see both machines. If not, then some default settings were not used
someplace or you have some other problem.