Oh well - at least we have established that it can work.
To try and summarise how it should be set up:
Firstly the PC with the internet connection.
Go to start>>connect to>>show all connections
Right click on the dial-up connection that you use to connect to the
internet.
Click on properties then click on the advanced tab.
Select "Allow other networks users to connect through this computer's
internet connection"
This will activate ICS and the DHCP server.
Next right click on the Local Area Connection
Click on properties and as before ensure it is showing the static IP address
of 192.168.0.1 sub net 255.255.255.0.
Click OK
Next go to the PC that is to share the internet connection.
Go to the network connections and for the local area connection for that one
set the TCP/IP Properties to Obtain an IP address automatically.
Click okay. When you reboot this PC it may lose its internet connection.
You can try it by opening explorer. If you get page not found, it could
either be due to the dial-up taking a while to connect (click on refresh) or
you may have to right click on the icon in the systray and click repair.
If you have windows firewall enabled then disable it for now.
If any other local area connections are showing, disable them.
If you have a firewall such as zonealarm installed, right click and
shutdown.
You should not stay connected to the internet without a firewall enabled so
see if it works and then we can sort out a firewall.
You should also enable security (WEP or WPA) for the wireless connection
once it works else anyone will be able to connect but again, get it working
first.
If you want to start the whole installation again you will need to delete
the NIC from control panel>>system>>hardware>>device manager. Take the PCI
NIC out, reboot, shutdown, put the NIC back and reboot so it reinstalls
"wzl" <(E-Mail Removed)> wrote in message
news

1F17659-6163-4C62-937B-(E-Mail Removed)...
> well thanks for the help, it worked as soon as put the IP in ,and the same
> ip
> in the other computer, but with .2 on the end, they connected, and i was
> rather happy, but as soon as both pcs had been reset, the same problem
> occoured again.
. now the same IPs just dont work, still does what it has
> been doing?
> well at least i got to know waht a network was like, we palyed worms over
> it
> hahaha
> thanks
> liam
>
> "Tony" wrote:
>
>> "wzl" <(E-Mail Removed)> wrote in message
>> news:26E40DC0-D8D5-4F71-9DE2-(E-Mail Removed)...
>> >I Have this identical problem I have searched high and low and cannot
>> >find
>> >an
>> > answer 
>> >
>> > "Iain" wrote:
>> >
>> >> I am trying to create an ad-hoc wireless network between two
>> >> computers:
>> >>
>> >> 1) Desktop, WinXP Pro SP2, generic PCI 802.11b NIC with AMD am1772
>> >> chipset,
>> >> latest drivers. This PC also has an internet connection via external
>> >> 56k
>> >> modem that I want to share with ICS.
>> >> 2) Laptop, WinXP Home SP2 (italian edition), generic PCCard 802.11b
>> >> NIC
>> >> with
>> >> AMD am1772 chopset, latest drivers
>> >>
>> >> Having followed instructions for creating an ad-hoc network on
>> >> microsoft.com and other sites, I always have the same problem: Both
>> >> computers
>> >> connect to the network but then stay in the "acquiring network
>> >> address"
>> >> mode
>> >> indefinately. I have run the home networking wizard on the desktop
>> >> machine to
>> >> fix its IP address and enable DCHP server capabilities. According to
>> >> the
>> >> network properties of the wireless NIC it's TCP/IP address is
>> >> 192.168.0.1
>> >> as
>> >> expected, but the wireless connection still maintains that it is
>> >> acquiring a
>> >> network address.
>> >> I suspect that I may have two instances of the card drivers installed
>> >> as
>> >> the
>> >> device is labelled #2, but in the network connections page, and in
>> >> hardware
>> >> manager, it is the only one that appears.
>> >> Can anyone help?
>> >>
>> >> thanks,
>> >> Iain
>>
>> When the network card says it is acquiring IP address double-click on the
>> icon in systray then click properties. Double click Internet Protocol
>> (TCP/IP) and if it doesn't have "Use the following IP address" selected,
>> select it and type in the IP address 192.168.0.1, press return and it
>> should
>> complete the subnet mask as 255.255.255.0. Click okay and a warning
>> might
>> pop up to say that the IP has been allocated to another LAN adaptor and
>> do
>> you want to allocated it a different one, click 'no' then okay. Chances
>> are
>> that you won't use both instances of the NIC at the same time so it
>> shouldn't cause a problem.
>>
>>
>>