Wired or wireless?
 
I would probably recommend a fairly inexpensive router/internet gateway, such as what Linksys or Netgear market. That way, if you don't already have broadband internet access, adding it later is a snap.
 
Also, the router/WAP will function as a DHCP server, so there'll be virtually no client configuration necessary, unless you choose to.

A nice linksys router will do . THey are pretty cheap nowadays, and act as a firewall, router

So, really any hub or router will do and all the networking should automatically detect right? I'm mainly doing this just to play some LAN games and sharing some hard drive space between the computers. I also am doing this wired since I don't have the wireless network cards.

If you use a router, then yes, everything will be set up for you. If you use a hub or switch, you will either need to have a DHCP server or set static IP addresses on your machines.
 
A router with NAT (network address translation) does offer some protection, but to call it a firewall is slightly misleading. Personally, I use a Linksys BEFSR41 at home, along with a software firewall (Sygate Personal Firewall, if you were curious) to restrict incoming and outbound access as needed.
 
The best protection you could get with a SOHO-class router would be to forward known-dangerous ports via the router config utility/applet to invalid internal IP addresses.
 
Hope that helps, and you might want to check out www.labmice.net for a more complete explanation on common networking components, etc.

if you are going to get a cheap router get a netgear not a linksys

I was actually thinking of getting a crossover cable instead for my network since it's only 2 computers. Can the crossover cables connect a desktop and laptop computer? Both computers are running Windows XP and what configurations will I have to do in order for the 2 computers to share their hard drive space and also play LAN games with each other?
 
Thanks

Quote:I was actually thinking of getting a crossover cable instead for my network since it's only 2 computers. Can the crossover cables connect a desktop and laptop computer? Both computers are running Windows XP and what configurations will I have to do in order for the 2 computers to share their hard drive space and also play LAN games with each other?

Thanks

Yeah, thats all you need to do. Just run the network setup wizard and it'll set everything up for you. I have yet to get the file sharing working the way I want it though.