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for this you need to have a N.I.C<network interface card>/ LAN card installed on both computers (a port behind the computer which looks like a port for phone but bigger in size) a network cable( not to exceed 80 meters) make sure it is clipped properly on both the ends with RJ45 jack (or if you want to create network without wires then install wireless N.I.C cards in both the computers

after all connecting the cables to both the computers turn both of them on (install the network card driver no need if already ) the on run type ncpa.cpl

then a new window for network places will open right click on local area connection click on tcp/ip click on properties

(by default obtain ip automatically is selected just select the next one "use the following ip address") now enter the ip address and subnet mask 255.255.255(subnet mask remains the same through out all computers)( for 1st pc then for the second and so on)

do the same in all the computers 

then right click on my computer > Properties> computer name> change the work group name as per your desire but remember to keep it same on all the computers > ok > then restart the computer then do the same in all the computers then the network is ready

(for multiple computers you can use multiple nic cards or better use a hub or a router if you use multiple nic cards you need to assign ip to all the cards and if you use router you dont need to do any of the above mentioned steps except for the work group name cause router does it all for you still you need some cable some nic cards )

your network is ready

if not so sure

run>ping any ip address for eg(ping

enter if reply is there you are connected and if not you have done some thing wrong with the above process

if you want to share folders

right click on folder you want to share click on sharing and security click on i understand the risk.........

just enable file sharing

give a appropriate name

select permission to access folder click on full access if you want to let other edit it

click on apply ok

you are done with folder sharing too