In trying to network XP & 98 PCs I came across these notes. I hope they are of use to others.

I have not succeded yet & some things mentioned do not seem to exist on my win98 Pc.  BUT the XP one (host) reports connection when the the 98 (client) is running.
XP's Network Setup Wizard creates a floppy to setup same network on the 98 PC and it says click on "My Network Places" but alas it is nowhere to be found, so I cannoct couple to the other PC.

I use winXPSP2 and win98 (not 2nd edition)

If anybody sorts these things out, please shout out.

Also visit these sites:- http://www.microsoft.com/windowsxp/using/networking/getstarted/getsetup.mspx
           http://www.microsoft.com/technet/archive/itsolutions/network/deploy/bldnetw.mspx
http://www.annoyances.org/exec/forum/winxp/1055785144
NOTES found:-
Internet Connection Sharing (ICS)
You can connect an Internet connection to your network with hardware or with software. In the long run, using a proper hardware router will give you the best performance and security results all around. But if you don't have the hardware yet, you may want to use Internet Connection Sharing (ICS) as an option for the short term. ICS is included in Win XP, Win 98 Second Edition, Windows Millennium Edition, and Windows 2000. With ICS, you can turn one computer—usually your newest and most powerful PC—into a server (also called a host computer) for the rest of your network. ICS transfers data between the Internet connection and the other computers on your network.
If you decide to use ICS for any length of time, read the documentation, follow the steps exactly, and give yourself time to do the job. Setting up ICS is not something to squeeze into 30 spare minutes—count on 15 to 30 minutes for each computer and Internet connection on the network. You might not use all that time, but it's a good idea to avoid the carelessness that comes with hurry.

You may have computers running operating systems other than Windows XP, or you may have a Macintosh® computer—the good news is that your Windows XP network is capable of working with all of them. We'll show you how to set up a new network using a Windows XP computer.

In terms of price and performance, your best choice for hooking up your network is wired Ethernet. If you can't run cable from one computer to the other in your home, and you want the speed of Ethernet, consider a home wireless network or a phone-line network that operates at Ethernet speeds. USB cable networks are great for connecting two computers in the same room, as long as both computers have USB ports.

Internet Connection Sharing
If you don't yet have network hardware, an alternative is a Windows XP feature called Internet Connection Sharing (ICS). ICS lets you connect one of your computers to the Internet and then surf the Web from any other computer on your network. For best results, you should consider buying router hardware, but ICS does allow you to share a connection.

Ethernet network: what you'll need
For two computers:
Network cards for each computer
Crossover cable
Networking only two computers together? With Ethernet technology, a two-computer network is the simplest of all to install. Each computer needs an Ethernet network card inside, and then you can run a crossover cable between them. That's it! It's not much different than plugging an appliance into the wall. Note that an Ethernet crossover cable is not the same thing as an Ethernet patch cable. We'll cover patch cables next.

The Windows XP Network Setup Wizard
The Network Setup Wizard automates some of the tasks involved in setting up a home network. It's especially effective with Ethernet® networks, saving you the trouble of configuring some of the other computers on the network. You'll have to make sure all your hardware is connected properly and ready to go, but much of the behind-the-scenes work is handled for you. The Network Setup Wizard has been improved for Windows XP Service Pack 2 (SP2). Launch it by opening Control Panel and clicking the icon.

How to use Internet Connection Sharing:-
To use Internet Connection Sharing to share your Internet connection, the host computer must have one network adapter that is configured to connect to the internal network, and one network adapter or modem that is configured to connect to the Internet.

Unless the 98 compp cant run XP.... I have not much knowlege with p2p direct connections...

OK,
the moment I get LOTS'o MONEY will change the PC with one that can take XP, and for good measure by a Switch.

What on earth is a "NIC", are you pulling the other one?

Having spent £11 ($15 ?) on 2 Ethrnt cards + cat5e, and as they must have been made to work somehow, I will carry hoping somebody clever enough helps.

like

If NIC is the ethernet cards I use, why then does it not work. I didd all these things, many times, and still nothing doing.                          luke

Eno,
1. Workgroup same on both
2. File & Printer, Client for MS Net, TCP/IP all Checked.
    EXCEPT QoS Packet schedualing not found inW98,
    but ticked on winXP

3. Int. Contn Sharing was enabled on Host from the
   start

TCP/IP on wXP 192.168.0.1   &  Supnet  255.255.255.0
on w98             192.168.0.2        "-"        255.255.255.0
on w98  also tried on the "Optain IP automatically.

"My Network Places" thing is not found in XP or 98 PC.

After each change, PC is rebooted.

PS. What puzzles me is the 2 cards in Host PC mentioned in Help & Support Center in using (ICS):

Using External Broadband modem:-   (What I have)
"...Requires two network adapters. Connect the DSL or cable modem to an Ethernet adapter installed on the ICS host computer. The second network adapter installed on the ICS host computer is connected to the home or small office network. All the other computers on your network need one network adapter..."

I have been around all these  dozens of times, to the point I am quite dizzy, but have no other choice.    luke

ok so we are going direct from one PC to the other correct?

If this is so you will NEED to use a crossover cable, basically a rewired cat5 cable. Best bet is to pick on up at the local electronics store for around $10 USD.

Once you do this you will need to assign both computers an IP, typically 192.168.0.1 and 192.168.0.2

If you are truly going from on pc to the other this is really the only way to do it without adding a router or hub. Trust me, I've been there and done that for quite a few years before we got the dsl and needed a router.

Hope this helped a little.. ?

Jared,

Please read what I have done so far in the thread above
and also long thread "network two PCs", last reply 28th instant.

Any constructive suggestions to help complete my ICS will be grately appreciated.              luke

Congo, you are a genious.

found it but still nothing happening, no networking.

looks like it's eqicalent in 98 is "Network Neighbourhood"

Hopefully bit by bit all of you may get my decrepid PCs to talk.                   luke