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If both your PCs are plugged into your router, that's all you need to do as far as hardware goes. What you need to do is set up a peer-to-peer network. In XP, you can do this by going to "my network places" and click "Set up a home or small office network" (I doubt that quote is entirely correct, but it's something like that). Make sure to name the networks the same thing. For instance, I use WORKGROUP. Once both your computers are in the same workgroup, you can start sharing files and folders (right click, hit properties, then the sharing tab, and click "share this folder on the network") as well as mapping network drives and the like.
Please post if you have any other questions beyond this, as I'm sure someone can answer them if I can't.
Hope this is what you were looking for.
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If you're flammable and have legs, you are never blocking a fire exit. - Mitch Hedberg
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