Internet Jams When Network Connected

Hi guyz, im having a serious problem here. me and my brother would like to do internet sharing. we both have windows XP installed and 1 GB LAN. usually my computer is the server. we have a simple peer to peer network at our home. ok now the problem is that when i connect to the internet, everything works fine, but when i enable my network connection, and my brother starts to access it from his own computer, the internet simply jams. it gets stuck. no further data comes. and the network lights in the taskbar they keep on flashing without any data coming or going. once this has started, even if my brother doesnt browse or use the net from his comp, the net connection is still jammed. but as soon as i or him disable the network, the connection returns to normal. im dumbfounded by this defect and i dunno why its happening? can anyone help plz. if u want any additional data i can tell u.

some info:
we have manually configured our Lan cards (built into motherboard) with IP address.

Settings on my machine are:

IP ADDRESS: 192.168.0.1
SUBNET MASK: 255.255.255.0
DEFAULT GATEWAY:

PREFERRED DNS: 192.168.0.2
ALTERNATE DNS:

Settings on my bro's machine are:

IP ADDRESS: 192.168.0.2
SUBNET MASK: 255.255.255.0
DEFAULT GATEWAY:

PREFERRED DNS: 192.168.0.1
ALTERNATE DNS:


there is also another problem, sometimes if we dont use this settings, our computers cant connect by network, they are like lost in the network o something dunno but u cant ping each other.

hey i think i mustve gotten u guyz confused, but i sure would appreciate some help.

 

May be this can Help.

Link to: Basic Options for Internet Connection Sharing.

Link to: Hubs, routers, switches, DSL, LANs, WANs...?

Ignore the prices in the links bellow. The same or similar hardware can be found for 60%-90% less.

 

well guyz i connected my pc to my laptop, n then the internet network sharing was workin fine...so it seems there is some prob on my bros comp.