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.