Networking DSL through a HUB

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I have a Desktop PC and a laptop, both running Windows XP home. I have a hub through which I connected the two. Both computers see eachother and can freely swap files, information, etc. To the Desktop I have DSL connected through a USB port. My problems start when I want to access the internet from the laptop. I ran the wizard on the PC, told it that this is the computer that has the internet. It gave me 3 options, connect to the internet on LAN1 (Which is where the two are connected) LAN2 (which is where the DSL is connected) and AOL. Trying all 3 of those I still can't get the internet to work. Is there a small glimmer of light at the end of the tunnel? or does AOL give me a good swift kick in the shins again?

update: I have fiddled around and managed to get a connection of sorts to the internet, I now have an icon in my system tray on the laptop that says Local Area Connection to Desktop. Opening this icon shows activity from Internet -> Internet Gateway -> My Computer. However opening Internet explorer or other web based programs do not detect the internet connection.
 
from my experiance you can't use the usb port unless you use ICS
internet connection sharing
if you have the cat 5e cables
delete the usb connection and use the nic cards instead.
I woulds get a single port router for the hub and or a 4 port router/switch then you will not need the hub
otherwise both pc's will need a nic anyway and a cat5 cross over cable for ICS
 
better choice is to replace the HUB with a router. People at BestBuy/CompUSA
seldomly know the difference and the consumer comes home with the wrong box.

ICS can be made to work-- with major degredation in thruput and the
requirement that the first system ALWAYS be available. With a router,
either system can be used independently.

The flipside is, using ICS allows you to protect all systems with only
one firewall.

I would still go to indepenence :)
 
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