Hi, I'm looking for a method to share folders locally between my two desktops (both XP, internet through dsl/router/modum). I also need to be able to simultaneously safely connect to internet. Not interested in ICS. Previously I used „Crossover“ cable between both. Can anybody help me out here please?

To link two computers together without using a cross-over cable you need a switch. Most home routers come with a switch built in. If you have a router with four Ethernet ports on the back you have all you need. Just plug the computers in and set them to obtain IP address automatically and they will get their IP addresses from the router which is correctly configured. This is assuming you have a router in which case ICS is a complete waste of time. BTW: It is ModDem (MODulatorDEModulator) not Modum Stuart

Thank you for correting my typing error, I have one more question. To share files, is it essential to enable „File and Printer Sharing“ and, more importantly, does this compromise security? Obliged.

File and Printer sharing is necessry if you don't want an overly complicated solution. If you are behind a router the added risk is minimal. Michael J

Get a wired or wireless router to build a simple network at home to access Internet and do file sharing. Take a look on these wired home network and wireless network setup tutorial to help you more. It's not difficult to build a network.

Thank you for your help