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Ethernet without internet

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there have been a number of products over the years to aid in this sort of connection,
LapLink, Interserv/interlink (old MSDOS 6) and direct connection using terminal in
Win3X/9X, as well as HyperTerminal. So, there must be something in the connection
details you have defined that are attempting to connect over the internet. Double
check all settings, choose something like "null modem cable".