With the help of Deckard (thanks again ), I've managed to partially set up a network. Basically, I made the network adapter automatically assign an IP address, and I made the workgroup the same and the computer names different.
I have two machines - XP and 98. XP is connected to the router via ethernet, and 98 via USB. Both are sharing the internet successfully (98 is a bit slow, and sometimes disconnects though).
I'm able to go into "my network places" on my XP machine and see the 98 machine's printer and shared files etc, so I know that side of things works. However, when I go into "network neighborhood" on the 98 machine, it shows nothing.
Anyone know why?