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I agree with peter, a wireless adsl router (from harvey norman would not even cost $150 from memory.)
It sets the ip addresses itself, you can always connect via usb or ethernet cable to set things up and then go to wireless once you are happy.
Step 1. get both computers talking with adsl router, without and then with a wep key
Step 2. work out your network cards mac addresses and then enable mac filter so that only your network cards can talk to the adsl modem, even if a guru works out you wep network key
Changes with the adsl router usually mean reboots of the router, but it is worth it to make sure it all works.
Let me know, I can send you some screen shots of my system at home. I have two laptops with Windows XP pro and the wireless adsl modem that telstra provides. It works beautifully.
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