Set up both PC with an IP address :
right click on network favorites, properties, then check that TCP/IP is installed, install it if necessary, go to its properties, PC 1 NIC 1 going to modem will be on DHCP address, DNS depending on your ISP, NIC 2 can be 192.168.0.1, mask 255.255.255.0, no special gateway, PC 2 NIC can be 192.168.0.2, mask 255.255.255.0, gateway 192.168.0.1.
Go to start, programs, administration tools, routing and distant access (it may be slightly different names, I'm translating from my french box), right click on your computer and go to 'configure and activate routing and distant access. Set Internet access server, choose Internet connection sharing, and share your modem cable connexion.
You now share your internet connection.
On PC2, just open explorer, go to tools, options, connection, delete if there are any numbering options, go down to network parameters, and see that 'proxy auto detect' is checked.
Go to start/parameters,
printers, on PC1, right click on your printer, go to share, and share it ! You then see and hand under it.
On PC2, go to start, parameters, printer, add new printer, network printer, you'll see PC1, click on '+' on its left, you'll see your printer, select it, install it now as usual.
You now share your printer.
To share a drive, I suggest you don't share a whole drive, to avoid any trouble coming from internet. Just share a directory (or several, but I suggest no dir with system files, as \winnt and so on). Go to my computer on PC1, open your drive up to the time you see the directory you want to share, right click on it, clik share, choose to share just for reading stuff from PC2, but no changing, or full access.
From PC2, click on network favorite, you'll see PC1, double click on it, you see your share.
You can do the same to share from PC2.
Thanks to assign points if all that is useful :]
Do not hesitate to ask more if you need some other tips.
J