Don't worry about the RJ45 and wifi, nor wigth the dynamic IP address, Ani, your router is in charge of that. Simply create a shared folder on each computer, and reboot both.
Then, there are several ways to see that both computers are ready to communicate.
The simplest one is the following one.
Open a CMD command line box (Start, Execute, cmd or comand).
Then type "net view" (without the quotes) and you will see the names of the computers and their sthared folders.
Then, you can type "net use * \\the_computer\the_sharared_folder_name" (without the quotes once more of course).
Hope this helped.
Yordan

Ok enough with all the rambling. hehe I like saying that.

Here goes

You can make a cross cable if you can put your hands on a crimp tool and have two rj45 ends.

Here is the pin connection:
1-------------------2
2-------------------1
3-------------------6
4-------------------5
5-------------------4
6-------------------3
7-------------------8
8-------------------7
12345678
‘ ‘ ‘ ‘ ‘ ‘ ‘
|_______|
|___|

Now the next thing you need to do because you will be using TCP/IP is to setup a workgroup and ip addresses.

You can use this range for your ip addresses 10.10.10.10 and 10.10.10.20.
Next you have to setup a subnet mask 255.255.255.0
There is no need for a gateway if you are not trying to connect to the internet via lan, but this could be 10.10.10.1

The setting for all this is in the network setup for the nic cards in control panel.

Oh and NETBUI is not the default network protocol in WinXp, but it could be configured to work if you don't want to use TCP/IP.

Lol this is way to hard to under stand i dont understand any of this lol i am also trying to link 2 computers but am unable to do it lol so if any one could help i would be very very greatful lol

Cheers

It's best to have a router in between the connections so that you don't have to use crossover cables, which can get really irritating. Not many people have crossover cable handy. Even for me, who have many computers in my network and have two network topologies running at the same time, I only have one crossover cable in the whole house.

Fortunately, I can connect between two Macs together with a straight through cable instead of having to use a crossover.

Once, you establish a connection, you just browse My Network Places on Windows XP to browse the other computer, given that the other computer has been allowed to share its resources.

If there was a router, hub, or switch, you could setup a share on the computer to shared the files between the two computers, without the need for crossover cables or file transfer USB cables.

Using jump drives is a nice way to if you have a gig or 2 that you want to transfer. I would recommend making back-ups of your files instead of file transfers from computer to computer.

This is interesting, I've never tried directly moving files from one computer to another. Usually when I'm transfering information I'll use hardware such as a USB stoarage Device or CD, however, I'm guessing transferring directly from computer to computer would be much quicker since the process involves less steps and the speed would be a lot quicker.

Now days with the advent of 1Gigbit switches file transfers have be alot easier and less time consuming. Easy to transfer photos, music, movies, and if you're fixing PC(s), backing up data. I believe you can get a 4/8 port switch for under $50.00 USD online some where. I'm from the states and I went to a 10gigabit planning seminar at an IT vendor conference. It seems 10Gigabit/Cat7 will be coming out sometime soon. The plugs look funky. I kept recommending to the IEEE lady who is on the steering committee that the cable is whack and something simple or cool like USB should be used.