hardware requirement - a simple switch that has one broadband input and several outputs. available in all hardware stores and pretty cheap.
two additional 'CAT5 - UTP RJ45' cables, commonly called cross-cables - also available in all hardware stores, and pretty cheap.....make sure you get the right lenghts, to suit your needs.
additional software requirement: analogx proxy. download from http://www.analogx.com/contents/download/network/proxy.htm
now here's what you need to do:
on the 'server' computer, i.e. the one from which you want to share the internet connection, install the analogx software.
now, connect the internet connection cable (provided/setup by your isp) to the 'input' jack of the switch you bought.
take one of the cables you bought, connect one of its ends to one of the output jacks of the switch, and the other end to the server computer's network adapter.
take the second cable, connect one of its ends to another output jack of the jack, and the other end to the 'client' computer, i.e the one you want to share.
power the switch on (it will have a power input and an adapter)
on the server computer, click on start, then click on RUN. in the run prompt, type in CMD and hit enter. it will open a command prompt window. in the command prompt, type in IPCONFIG
this will return you some values, one of them will be IP Address, and should have a value somewhat like 192.168.23.23 (four numbers separated by dots)
NOTE THIS VALUE DOWN
on the client computer, open internet explorer (dont panic, at this point it wouldnt connect). on the IE window, click on Tools -> Internet Options. in the properties window go to the Connections tab. click on the LAN Settings button on the bottom left. that opens a new window. this window should have three check boxes. check all three of them. that should enable the box that says Address and Port, within the 'Proxy Server' section. TYPE IN THE NUMBERS YOU HAD NOTED DOWN, WITHOUT SPACES, in the address box. in the port box, type in 80
click OK, and OK again and your IE is now setup.
next, on the client computer, click on start and go to control panel (for xp machines) or start-> settings-> control panel (for other windows versions). right click on the 'Network Connections' icon and click on properties. that should show you an icon with a name like (LAN, Local area connectio#1, my connection etc)
right click on this icon and click properties again. in the properties window that you get, scroll down and make sure the check box next to Internet Protocol (TCP/IP) is checked. highlight that entry and click Properties. in the new box, click on the radio button 'Obtain an IP Address Automatically'. click OK twice and you client computer is now set.
now go back to the server computer, click on start->Programs (=oar All Programs for XP)->AnalogX->Proxy.
on clicking on proxy, it should popup a message, thats ok, click ok on it, and your machines are ready to share internet.
if for some reason later the client doesnt connect anymore, it is because the IP Address of the server has been changed by the ISP. go to the command prompt on the server as before and run ipconfig as mentioned, and note the ip address down, and then go to the client computer, go to internet options in IE as mentioned before and make sure the IP address mentioned in the address box is the same as the one you noted down (you might need to do this a couple of times every month)