Connect 2 computers without a router - see more below?

I need to connect a Windows XP Home laptop to a Windows 2000 desktop computer. I have the Cat5e cable.

How do I set up the networking stuff so I can share files?

Please be as detailed as possiable! This is for a friend who's not very good with computers.

Connect 2 computers without a router - see more below?computer virus

The above answer is partially right. You'll need either a cat5 "Crossover" cable, or 2 wireless cards (1 in each machine) and setup the wireless network as a ad-hoc.

The easier method is the crossover cable, it allows you to connect 2 pc's directly without needing the router, or switch.

Connect the 2 pc's with the cable, ensure that the workgroup names are the same (right click my computer, left click properties, look for the computer name tab, and check to make sure both pc's have the same workgroup name, if not, change one of them) You will need to share something on one of the two pc's, its easiest to drag what you want to share into the shared folder on the pc. Then use the search feature (start - search - computers or people - computer near you, and type in the name of the 2nd pc you have the shared files on) You might need to repeat the search a couple times, windows networking doesn't always work on the 1st attempt.

This is a brief explanation, and by no means comprehensive... there are dozens of ways of doing this, but I hope this will help you get to where you want to be!