I just bought a new computer and would like to transfer files from my old ONE. My old computer is XP Home and my new computer is Vista Home Premium. I am trying to connect the two COMPUTERS via an ethernet cable, but I am having difficulty. When I connect the two computers with this cable and enable the local area connection, it has a limited connection. Do I need to assign IP and DNS addresses to both computers? What addresses should I assign and do I need to do anything ELSE?U can not connect 2 PC with a straight (patch) Ethernet cable to each other. U have 2 options use a crossover cable or switch. Follow this link for more details.

http://www.conniq.com/HomeNetworking_DCC.htm Just an additional thought: Some network cards have crossover autosensing, so you may get AWAY with using a straight through. You will need to assign IP addresses statically. DNS and gateway are irrelevant in this setup. Try setting one PC to be 192.168.1.1 and the other to be 192.168.1.2. Remember to set back to automatic/DHCP once you're done (if this is what your normal use requires).