(1) You need Cat5 Crossover cable, not normal Cat5 cable.
(2) Quit any Firewall software if you got any running.
(3) Click My Network Place, then click set up home or small office network, then just follow screen instruction. Two thing to remember (a) Give a name to each computer (b) Set network as workgroup and give group name "Workgroup". Do this on both machines.
They should be able to see each other. If you want to share directory XYZ on PC1, go to (4)
(4) Click My computer, find directory XYZ, right click XYZ and select property, from there you can find "Share" and then you can set permission there.
(5) Access Net, on the PC link to net, Enable "Internet Connection Sharing". You can get step by step instruction about this by searching "Internet Connection Sharing" on windows' help.
Want to instruction, check out "homenethelp" click here
Still does not work, come back here to tell us what you done and what happen.