If there is a network connection wizard in ME then yes you run it, you have to give the network a name and a password, having ZA security levels set to "high" will prevent the network from communicating, you have to set it to medium or disable it. You can put the IP address of each PC in the trusted zone of the other but in my case this didn't work.
Yes there is a network connection wizard in ME so I will run that and give each pc it's own name. How so I ascertain the ISP address of each computer? Sorry if it's a stupid question, probably has a simple answer.
If you have something like Belarc Advisor on your PC if you run it, it will display your IP address, if you dont have it, it or similar is well worth having, you can download it for free, there are other ways to find your IP address but I just can't think of them right now. When setting a network name just use MSHOME and your own password.
2) You will need to share the drives on each computer in order to see them on the other computers. I don't know how you do it in WinME but in Win98 and XP you do it by opening up Windows Explorer and right clicking on the hard drive and select "Sharing" (or something similar).