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Recently our small office purchased two Dell Computers with the XP operating system. The computers are identical in hardware and features. The goal is to network the two computers to share data files and the DSL line.
We purchased a Netgear router and obtained Ameritech SBC DSL service. Following the Networking Wizard commands to protect files, originally we connected DSL directly to computer #1, then connected both computer #1 and computer #2 to the router. Through this system the computers were networked as we had hoped and computer #1 was online, but we could not share the Internet with computer #2. The XP error message 799 continued to pop up on the last step (IP address conflict) ... yet we could not find the appropriate field to clear the configuration error on computer #2.
We called the service provider who walked us through several steps to confirm the correct settings (including restarting both computers) and still #2 is not on line.
Then the service technician suggested re-routing the systems so that DSL modem, #1, and #2 were all plugged into the router. Originally this new set-up blocked the network between the two computers, but after a few minutes #1 and #2 were able to read each other again. Now the problem is that NEITHER computer is on-line.
The DSL technician did not know what the problem was and suggested it was not the service's fault. I cannot imagine that it is an issue with the two systems since they are identical and responding to the network. My guess is that it has to do with the assignment of static IP addresses, however I am not familiar with how/where they are assigned and whether or not that would solve the problems we are having.
We have searched microsoft's site and nearly every link that deals with networking, TCP/IP settings, and internet connection sharing on the XP help and support database.
What is the next step? Is this a common problem with the XP systems? Networking/sharing a connection in general?
The other issue we are having with the XP system is the compatibility of the HP OfficeJet R80 scanning function. This printer/scanner/fax is connected through computer #2, and #1 shares printing capabilities through the network with it. We were able to scan one image successfully onto #2, but all other images we attempted to scan have been denied on both computers with a message saying the connection was not working. Upon researching we found the lack of compatibility between some of the functions of the scanner, but that doesn't explain why the first image did scan.
I do not know if these two problems are related, but any feedback on either/both issues would be greatly appreciated. Thank you in advance for your time!!

you should set both computers to use DHCP and set the router to give DHCP addresses. (usually router defaults have it turned on)
or manually put in the gateway address(router internal IP) and DNS address(ISPs DNS).
i'm not familiar with XP but on 2000 right click on Network Places | properties | right click on the LAN connection | properties | TCP/IP | Properties

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