gotta go but here is a rundown on setting up a network...

Start>Network connections>Set up a Home or small office network>next>next>This computer connects to the internet through another computer on my network or through a residential gateway>should be filled in so,,,next>Name your network,do not leave it MSHOME as it is filled,,, next>next>Just finish the wizard,,, next>finish...

do the same on your buds puter using the nework name...

This all assumes you both have WindowsXp I'll be back briefly in about 30 minutes,I gotta go now...