Geez I never knew the PS2 had a NIC either... so I'm not sure what the details on that is.
Anyway network cable unplugged means that your computer isn't getting anything through the ethernet port, regardless if a cable is plugged in or not. This could mean a bad cable, misconfigured protocols or some other network settings, or bad NICs.
I'd start out with the obvious and see if you can connect your PC to another PC. It's probably best if you try to plug into an existing network, and/or plug into a computer that is known to network properly. This will help determine if you have a bad cable or a problem on your PC and what not.
If all that works then your PS2 probably isn't configured properly. Again I don't know the details of the PS2 network settings so make sure they correspond to your PC, if possible.
If your PC can't connect to another PC, then make sure the cable is good and check your interface card/drivers. Then check the network settings and the like.
Make sure the proper protocols are installed and set properly.
As far as ICS, look up the help pages because that would be a much better source of information on that topic than me. Make sure you setup the host properly etc.
Sorry for being vague but I hope this gave you some idea of what to look for.
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