Desktop

Your plan to network two computers will consist of a cable connection,but you will need NIC's in each computer to set up a peer to peer network,and then follow the procedures of installing and configuring your network to access the internet.
cable connection will allow you to share files between two computers by direct cable connection.

Oleg things you need to do.
1) if you are setting up a direct connection with 2 machines you will certainly need a Nic in each machine. you will also need to connect these two machines with a cross over cable a regular cat 5 cable will not allow you to connect two machines together.
You will also need to configure a protocol. Netbios will work fine, but if you want to have some fun and ever plan on getting into networking I recommend installing TCP/IP. You will only need to give each machine an address and a subnet. It rather simple. the dila up thing is strange, you may want to remove and install dial up or check you dial up properties to make sure the device being used for the connection is not your adapter. Good luck Oleg it can be a pain to set up a home network, but trust me I have a 7 node network at home now and for all its' trouble it is really worth it from a self training perspective.

I'm assuming you are using Win98 SE. Windows 98 does not support Internet Connection Sharing. A direct cable will not work because ICS is based upon IP addresses that Win98 SE assigns. You will need 2 NICs and also a CROSSOVER cable if you will not be using a hub. Don't just buy a regular patch cable to connect your two computers. Good Luck.

Direct cable connection cannot use the same protocol as another device. You need to install Netbeui as a protocol and make sure it is bound only to the direct cable connection. Windows should now allow a network connection during dial up. It may solve your second problem as well but I haven't tried that.

You will need a Nic Card in each computer and use a Patch Cable to connect each computer. Make sure the Patch Cable is a crossover cable. Then activate the Internet Sharing through the Control Panel, Add and Remove Programs and go to the windows setup tab and add the internet sharing connector and follow the instructions.