Internet Connection sharing desktop and compaq(laptop with 1394 co

Hi
I am unable to connect my win xp sp1 desktop PIII with the compaq nx7300
laptop. I have Compaq NC3121 Fast Ethernet NIC #2 on PIII installed and using
usb cable to connect to internet which inturn is fully functional and laptop
shows 1394 connection.
What i have done :
1)Have enabled internet connection sharing from the server's local area
connection properties for other computer.
2) Had made to run n/w setup wizard on both pc's one as server and other as
client and have used MSHOME as workgroup name on both.
3)assigned static ip address of 192.168.0.1 on server (Desktop) and on
client(laptop) 192.168.0.2. with same mask of 255.255.255.0
4)After doing restarts on both pc one at a time i am unable to ping from
either side one(server) shows request time out other shows destination host
unreachable.
Please help. I would highly appreciate the effort.
Thanks
Robin