Want to learn how to set up a LAN network? I suppose I should first define for you the abbreviation and thusly, the term Local Area Network.

Probably the simplest definition around:
LAN: Local Area Network (LAN) is a computer network covering a local area, like a home, office or small group of buildings such as a college.

Source: Wikipedia; http://en.wikipedia.org/wiki/LAN

With that in mind, you can now have some grasp of the handiness of such a "network". Another example not mentioned is the fact that, with LAN, one could play multiplayer PC games together/against anyone else connected to the same LAN; in most case, games have a seperate option for just that.

To set up a LAN, you must first realize (if you have somehow managed NOT to so far) that you need more than one computer for this to be completed correctly.

No, on to the steps:
1. Open your Start Menu; if you have the Settings directory in the immediate toggled menu, continue from here - otherwise, refer to the below sub-steps to reach step 2.

2. Once you've clicked on Settings, click on Control Panel, which should pull up a window with your computer's main settings.

3. In the Control Panel, locate Network Setup Wizard; pull up that setting.

4. A Wizard program should have opened, now allowing you to configure your LAN among your computers.

5. Complete the Wizard accordingly; if you are unsure, the Wizard should have examples of each option it gives.

6 (Optional). To see that you have correctly completed the LAN set-up, you can refer to the Network Connections setting, which should also be located in the Control Panel.

There you go! You should now have a complete LAN set up. All that is necessary for you to do now is to repeat the same steps on the other computers you wish to set up the LAN for.

Alternate Step 1. If you do not have the Settings option in the Start Menu, no worries. Probably the simplest way to show you how to reach the Settings/Control Panel, go to your My Computer or equivalent; Locate the Control Panel there or simply click the drop-down menu and you should be able to find it there.
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If you have any more questions, either reply here or PM me.

nice tutorial for starters man.. very good!

Forgot some Hardware specs for example, Most LANs require a Switch, a HUB or a Router.

HUBs are used to connect anywhere from 6 to 150 computers togeather, And they transfer the information packets to every single computer, which at most times is kind of bad because it slows the working power of the computers by 20%. but they still work, and work good for LAN parties (Lan parties are when you bring your computer over to someones house and play games for 24-72 hours straight.

Routers are only good for either Wi-fye connections or connecting a low amount of computers to a network and/or internet (these are used mostly by Internet Companies that work with DSL, Cable, or T1-3 lines)

Finnaly a Switch. These are almost exactly like the HUB but it works much better, because as i said before a HUB connects to each computer at the same time and transfers the exact amount of information packets to every computer, weither they need it or not (if they don't need it it wont actually send it to them it will just kind of say "nope these people don't need it" but it takes up alot of 'bandwidth'). While the switch only sends the packet to the computer that asked for it, while keeping everyone connected, which speeds the connection, allowing better lan parties (one person can be getting shared files while other people are playing without a problem)

Thanks for the update Killer008 - I appreciate the help!

no problem, your guide is good for newbie LAN creaters, I was just about to try and post one about hooking up a lan party myself.

Good! Yeah, I actually had it in mind to make a newbie tutorial for LAN set-up; I myself am not extremely proficient in the matter. But also, if you want to make such a tutorial, I'm sure it should fly. Just make sure that you don't make it tedious and look like mine, otherwise they might disregard it. For instance, I might just include the advanced steps, and perhaps refer them back to this tutorial for more information on basic set-up.

Thanks anyways bud - !

I should've had something like this when I started college. I had no clue what to do. It's really common sense (and a little trial and error) on my part. I finally suceeded, but it's always good to know what to have ready. I didn't read all the tutorial, but if you didn't mention those cables you can use to connect 2 computers together (a single ethernet cable), that's something fairly nice for those who want to "lan party" with 2 pc's. I think you can do it without buying a special one. You just have to know how to alter a simple ethernet cable. I think that's what I heard, which if someone knew what to do, that's some good information as well.

Deathmatching is always fun =).

Hell, yeah... deathmatching is good fun... "me likey destroy thingies!" - .

Very good tutorial. And especially useful for beginners. Perhaps, in the future you could have had a short tutorial on WAN.