Networking 2 Home Pc's thru Router with cable modem

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I cant seem to get this to work.. one pc works but the other one wont no matter what i try. both have windows xp, and Ive tried the whole network setup, neither will ping the other and Im at a loss.. neither is a host computer, could that be the problem?
 
So in effect the router is the host; manages the IPs and makes the initial connection. When you say, you have done the network set-up, has the second computer (doesn't connect) been configured for dynamic IP, etc...?
 
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