You know, I've been sitting here trying to figure answering this, but there is so much to it, I was thinking the same thing....which is what I did in my home, I just bought the router and it wasn't expensive at all. And it was easy to hook up.

The networking wizard on your computer will walk you through the steps. But......pay attention. I couldn't pay attention long enough, that's why I just got the router. (Linksys at that time). I'm sorry.

EDITED TO ADD:  Don't give up though, someone smart might come along yet and be able to help you.

If I was standing on a fish, I'd slip and fall......

i can see doing one of two things:

1. when you purchase the router, ask the tech help at the store, give them your goal end result, and they should be able to give you what you need.
2. once you are home and have the router, and anything else that was needed, you come back here to this particular thread you started and you will get support here.

Tuna ><((((*> the other white meat!

Well you should have a modem that the DSL line goes from the phone jack into a modem and then into into your computer.  Check on the back to make sure that you don't already have a area to plug in two cat5 lines (most don't but some do).  They do make spliters for ethernet cat5 lines but they can get costly for a good one.  Your much better (and cheaper) to get a router.  Here is a good one for 39.99 and currently free shipping and handling

LINKSYS WRT54G IEEE 802.3/3u, IEEE 802.11b/g Wireless-G Broadband Router - Retail

that is a great price and it has 4 cat5 ethernet cable plugs in it so you can hook up all 4 or go wireless. 

 

What you have is a USB hub. This allows you to use multiple USB devices at the same time. Not what you need here. You will need a router or a "switch". Least expensive and easiest way is to get a 10/100Mbps ethernet switch... plug the line from your DSL modem into the input and the computers can plug into the outputs. No software needed. Just plug in.

Here's a network switch:

You can also use a router like the LinkSys already mentioned, but sometimes you have to hold your mouth right (reset and pray) if your DSL service is buggy. You don't have to be wireless to use one of these - plugs are in the back. Advantage here is you are set with wireless if you ever get a notebook computer. Here is a LinkSys home router:

To network the computers connected by a switch or router you will want to run Windows Network Setup Wizard (in Network Connections) and follow the instructions. You'll need a floppy or a USB memory stick.

A guy recently told me THIS is a wonderful alternative to Windows Network Setup Wizard.

You cannot split a CAT5/6 cable and expect to be able to network two computers easily. You also cannot use a splitter to share an Internet connection - you need a router or a switch.

Hey change that.  Get a router and not a switch.  I forgot.. a desktop switch won't work unless one computer has 2 network cards.  That computer must hook to the Internet using one NIC and another computer connects to teh other NIC.  Not a good way to do it.

 So get a LinkSys wireless and be done with it.  Much simpler 

No you would need to have two in one  computer plus I can tell you that you would still probably have issues.  Really router is the only way to go.

 

Yeah.. sorry about the acronym.  A NIC is short for Network Interface Card.  Also known as an Ethernet card.  If a RJ45 sized plug fits into it and snaps in, it's a network card.  The RJ45 sized plug is similar to but a bit larger than a phone plug.

A similar jack accomodates a phone line from the wall and is smaller.  If you have this card, it's a modem used for dial up.  It's very possible to have both installed in teh same computer.

NIC (networking interface card):

Modem: