setting up my first network...need some help and guidance

i have a toshiba laptop with an ethernet card built into it. and my friend has a compaq desktop with an ethernet card also in it. i am running windows xp and he is running windows me. i connected the two computers with an ethernet cable, joining the two cards, but i have not set up the netwoek on the computers yet. how do i do this? i tried to set it up on my laptop but it says to use my windows xp cd on the me computer and run the network program...but toshiba didn't give me a windows xp cd, it's just 3 restore cd's that won't work on the compaq. any help, tips, guidance? can i set it up manually without the aid of microsoft products? thanks in advance.

First things first... If you're connecting one computer's Ethernet port to the other computer without going through a hub or switch, you can't use a standard (straight-though) Ethernet cable. You would need to use what's called a crossover cable instead.

As for actually configuring a network, there's a few different things you need to address, with each dependent on the one before it. I've created a short list below, but there's no way I could include every detail you'll need to know in a short forum post. You may want to refer to sites like practicallynetworked.com for more help.

Physical cabling, etc.

If you're only connecting two machines, a crossover cable between the two computers ought to cover it. Then just make sure that the network cards' drivers are set to compatible speed and duplex settings.

Network Protocol such as TCP/IP, IPX/SPX, or NetBEUI

If you're new to networking, NetBEUI is the easiest protocol to configure. It's not as robust as the other two I mentioned, but for basic file sharing and whatnot on a small network, it's definitely sufficient.

If you're playing games over your network, you may need to install a different protocol. Most newer games require TCP/IP, but there's a few that are still out there (like Starcraft before the most recent patch) that require IPX.

If you're planning on using this network connection to share an Internet connection, you'll need to use TCP/IP.

Network Client

Make sure that "Client for Microsoft Networks" is present in the network properties on each machine. It's what enables Windows file & print sharing to work.

Password Authentication

Whether you know it or not, Windows XP requires a username and password in order to log on and access resources -- whether you're sitting at the keyboard or accessing files across a network. You'll need to create a user account on the Windows XP computer for the person logging into the other computer. And the person logging into the other computer must use the EXACT username and password as the account you create on the XP box. If you don't get a logon prompt at the other computer, you'll need to change the network client settings on that machine so that you can enter the correct username and password.

ah! thanks for your help:) it is much appreciated.

about the crossover cable, will that be able to have the two computers share internet connection like how other forms of networking let you?

Yes, the computers could share an internet connection but you will have to enable Microsoft ICS (Internet Coonection Sharing). plus keep on the computer that is hooked up to the modem. If you have high speed internet access, save yourself alot of trouble and by a router with a 4 port switch such as I have; Linksys BEFSR41. D-Link and Netgear to mention two others make these routers. Much easier and all computers hook into the router, allowing all to share the internet and making networing a breeze.

thankyou both for your help. i bought a Netgear 4-port hub today and another ethernet cable and got it all set up. then i enabled and installed ICS and it works wonderfully:). it's only dial-up, so i wouldn't need a router or switch. i'm posting from my laptop as my friend plays warcraft three ...i'm very excited about this new/simple network:). thanks again.