Making 2 networks in LAN

I believe you can, we have a similar setup on our server here at work. You will probably need to enter the computer 192.168.1.1 as the gateway on the other computer.

An easy way to get that working is to use shorewall on your "server" PC (The PC with 2 NICs). If shorewall isn't already part of your distro, go to http://shorewall.sourceforge.net to get it.

What you need to do is set up NAT (network address translation) or masquerading on the machine with 2 NIC's and use a crossover cable or a small hub to connect the second PC to the one with two NICs. A good howto is here http://www.netfilter.org/documentation/HOWTO/NAT-HOWTO.html

yes u can access the internet but for it u have to install NAT or MASQUARADE on common system for both n/w. if u r using the Linux then i can give u a few commands or can write a firewall for u for both internet access and seperation also n this depends on IPTABLES . if u r intersted then pls let me know.

Try using NAT (Network Address Translation). For this you would need two network cards (eth0 and eth1). Set your firewall with IPTables. configure the eth1 to be your internal network and assing the intenal network with non-routeble IPs like 192.168.0.1 255.255.255.0. Once this is done you sumite the command: /sbin/iptables -t nat -A POSTROUTING -s 192.168.0.0/24 -o eth0 -j MASQUERADE. This will be more versatile thin SQUID and in some cases faster. Rimember that Linux is case sencitive so you would have to type the command exacly the way is type. Also, it will not do ftp. If you want ftp you would need to give the command: /sbin/modprobe -a ip_conntrack_ftp ip_nat_ftp. Good luck!