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you can also setup a home network using a hub instead of a switch or router.
the difference is a hub is the cheapest, but least secure,it reads incoming data and broadcasts it to every computer on the network. a router reads destination ofincoming traffic and routes it to the computer that requested the data, and also has a firewall builtin.
A switch is the most expensive of the three and unneccasary in that their are built for large corporate networks, it's like having your newspaper engraved an a silver platter.
If you only have access to one IP address then you can't use a hub, unless you have a gateway computer using ICS or similar..