cant connect with DSL

I have two PC's set up as a LAN attached to a hub, no server. One PC is a Win 98 machine and can access the internet. The other PC is a Win XP and cannot access the Internet. The WinXP PC reports that it is connected correctly to the other PC (that's what the systray LAN icon says anyway).

I am using two static IP's using DSL, and I am using an Efficient
Networks 5250 Speedstream bridge.
They are two separate static IP addresses.
There is no router.It is setup so that when the PC is turned off you can't ping the machine because it is a bridge. The ISP does not use DHCP.

Pinging from the Windows 98 PC to Windows XP times out.
Pinging from the Windows XP to Windows 98 times out.
Pinging from the Windows XP machine to it's own default gateway times out.
Pinging 127.0.0.1 does respond.

127.0.0.1 is your loopback IP , did you use the wizard to setup the network?? what IPs and subnets and you using?? are you using patch cable to connect them to the hub or crossover cable??

About the cable, I had a network person (who is not familiar with WinXP) setup the LAN so I know the cabling is correct.
I am not sure how I would use the connection wizard. I tried to delete the present LAN connection but the delete is grayed out when I right click on it. Should I just click on create new connection and that will remove the old LAN?

The IP address on each machine is xxx.xxx.xxx.208 and xxx.xxx.xxx.209 (it does not start with 192.168.0 there is no NAT) The subnet mask is 255.255.255.224.
I am not sure if that is the info you were asking about so please let me know.

The problem was taken care of by right clicking the network connection and click Properties Configure Advanced. The default was AutoSense. I changed it to Full Duplex.