There was some discussion here a while back as to the benefits of dhcp, I said dhcp was great for networking any number of machines, Terr said if its under 8 or 9 (i think), dhcp isn't worth it - whilst i don't agree with that entirely, i'm inclined to think setting up dhcp between 2 pc's connected by a X over cable is overkill.
Ymets2k01 - You most definately do not need a hub to network 2 machines, a cross over cable is perfectly adequate. Networking 2 windows boxen is like knocking snow off a rope, a proverbial piece of piss - rather that rehashing the steps to do it here, have a look at this -
http://www.lincezone.com/homenetworking/proxy_setup.htm