How can i accomplish this task?  Both of my computers have NIC cards, and i have a cable connecting the 2 of them together.  My friend told me i needed a twisted cable of some sort to link these together, or use a HUB.  Once i get this cable, where do i go from there? How do i set up the configurations to make this work?

You have the NIC cards and now all you need is a CROSSOVER cable. If you use the normal straigh though cables you'll need two of them and an Ethernet switch/hub for about $40.

Go to the control pannel and enable file and print sharing. Make sure they have a protocol in common (like TCP/IP). If you're not connecting them via the NIC's to the Internet (broadband) then assign them IP addresses in the same network.

I like using the 10.10.10.x subnet as this is a group of private addresses that aren't suppose to be forwarded by routers on the Internet. Then set the subnet mask to 255.255.255.0, pick a matching "workgroup" name, save and then reboot both computers.

Now to share a sub-directory or printer just right click on it and click on share.

What operating system are you using?

both have  win 98SE

Do i assign the same subnet for both and just different ips?

here is a sample of what i would do following your instructions

Computer #1
ip 10.10.10.01
subnet 255.255.255.255.0

comp #2
ip 10.10.10.02
subnet 255.255.255.0

workgroup for both homenet

is this correct?

i had them both set up for client for microsoft networks.