Check the instructions that came with your hub to see if you need a X-over cable to connect PC #1 to the hub or not. That may or may not be built into the uplink port.
Install Internet Connnection Sharing to PC #1. On both PCs install TCP/IP and Client for Microsoft Networking. Bind NETBIOS to TCP/P but not Client for MSN (unnecessary). On each PC assign a unique computer name but *the exact same* workgroup name.
Carefully follow the instructions under Windows Help on how to set up ICS. Set PC#1 NIC#1 to the recommended TCP/IP settings for your ISP. NIC#2 should be set as 192.168.0.1 by ICS. On PC#2 set TCP/IP to allow the DHCP server to assign IP addresses, turn off WINS resolution, use default gateway, and allow server to resolve DNS addressing.
Install file sharing on the PC(s) you want to share files and drives from and after you've set this up go into My Computer and select the drives, directorys, and/or files you want to share. Right-click and set up Sharing with a strong password (9+ characters, no dictionary words, and a mixture of letters and numbers). The first time you access this shared resource from the other PC you'll have to input the password again but only that one time.
Finally, install a decent software firewall on PC#1 because it's sitting there with its naked behind hanging out on the WAN and set addresses 192.168.0.1 through 192.168.255.255 as part of the local network under the firewall.
