Connecting PCs together for file sharing

XP Home has file sharing built into the OS. You will just need to verify that it is enabled on both machines. Assuming that they both have network cards, the cheapest way to network them would be to use a crossover cable to connect them. You will have to configure static IP addresses to use this method.

-Norm

how far apart physically are the 2 pcs? if each has a network card, then you can go to office max or radio shack or like that and get a network 'crossover' cable. then hook both together with it and turn on the pc's. get a blank formatted floppy and go to the xp home pc and pick Control Panel/Network Setup Wizard and see if you can follow the instructions. it will make you a setup disk to use on the other pc to make a little workgroup network for you.
here is the microsoft link with instructions:
http://support.microsoft.com/default.aspx?scid=kb;en-us;308522

Connect computers using CAT-5 cable

To get File and Printer Sharing to work between your Windows XP Home Edition computers:

Enable the "Guest" login account
Open the "properties" of the network connection to the other computers and be sure both "File and Printer Sharing" and "Client for Microsoft Networks" are checked.
Disable ICF (Internet Connection Firewall) on the network connection to the other computers. To do this open the "properties" of the network connection, select the [Advanced] tab, and un-check the "Protect my computer or network" box.
Ensure all your computers are members of the same "workgroup". (They probably already are as everything defaults to MSHOME.)
Understand which IP addresses your computers will use, and configure these as "trusted addresses" in all software personal firewalls.
Enable NetBIOS-over-TCP/IP for the network connection to the other computers. To do this open the "properties" of the network connection, highlight "Internet Protocol (TCP/IP)" and click the button [or double-click on "Internet Protocol (TCP/IP)], click the button then the [WINS] tab, check the "Enable NetBIOS Over TCP/IP" box, and back out by clicking . (Besides "Enable NetBIOS Over TCP/IP" another option "Default ..." might also work, but it requires that your router/NAT box be configured correctly.) My reading suggests this should only be necessary if some of the computers are older ones not running XP, but my experience suggests it's necessary even in an XP-only Home configuration.
Use the pre-installed TCP/IP networking protocol suite for your File and Printer Sharing as well as for access to the Internet. It is apparently possible to use a different networking protocol suite for File and Printer Sharing if you have the operating system installation CD. But I don't have experience with using other networking protocol suites, and I don't see that it's necessary.