Yes, it's possible, as long as you're only wanting to set them up in a WORKGROUP rather than a DOMAIN environment. XP HOME can't be connected to a domain.
You could also use 2 CAT5 patch cables and a workgroup hub to connect the 2 PCs as an additonal option. Most mini-hubs only cost $30 or so, and would give you the flexibility to expand you network in the future if you choose.
If you're asking for technical help, please be sure to include all your system info, including operating system, model number, and any other specifics related to the problem. Also please exercise your best judgment when posting in the forums--revealing personal information such as your e-mail address, telephone number, and address is not recommended.
how many computers?
can you please tell me if i can network XP Pro and XP Home together?