problem connecting 2 computers to cable modem

I am having a problem. I just got home from school for the summer and i wanted to get the internet in my room. The computer in the living room has a cable modem and a hub and a 1 port router. The cable modem is plugged into the router, the router into the hub, the hub to the internet connection and the hub to the computer. I went and bought a cat5 cable and plugged it from my computer into the living room computer hub. Then i tried to follow the instructions but i cannot get the internet in my room. I don't know if i have to set up a network or what. My friend said he bought a 4 port router and all he had to do was plug both computers into the router and into the cable modem and didnt have to do anything else so i might do this. Any help would be greatly appreciated thanks.

 

a couple more things. The computer in the living room with the cable modem connection is running win98 and my computer is running xp, i ran the network wizards and it appeared that they made independent networks and they do not recognize each other

 

this is how it should work..

CABLE MODEM TO ROUTER
ROUTER TO HUB'S UPLINK PORT

ALL OTHER PC'S PLUG INTO HUB