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Danish,

There are a few things that you would need to check out here:
* Are you trying to connect your PC to Laptop directly without a Hub? Then you would need a Peer to Peer cable.
* A peer to peer cable would be different from a Peer to Hub cable. You might want to go to a HardWare Vendor and get it modified.
*When you connect you lap to comp in either system tray do you see the netwroking icon flashing? it should say Network Connected at 100MBps.
*Try to ping each other; Open a Command Prompt window in Your PC and try to Ping your laptop. Just type
Ping [IP Adress]
IP address: The IP you gave to your Laptop Eg:192.168.0.224
*Ping your PC from your Laptop.
If pinging is not working your Network is not working.
*Try this: go to your Network Adapter Properties- Choose the Media Type as 10MB Hald Duplex. See if the network works by pinging- If it works Try 10MB Full; if it works progress up till 100MB full. See where it doesnt work.

If it doesnt work then- you would need a little advanced Trouble shooting.

PS: Are you sure your TCP/IP properties are correct. IP adress. Subnet Mask.

Also please try disabling the windows XP firewall and try to see if your network works.

cheers.