Please find correction below.....
Hi,
There are 2 solutions apart from iptables:
1. Hardware solution: Buy a hub (~ Rs. 600 for 8 port I think - dont remember
exactly but very cheap) and connect both machines to this. You will have to set
them to DHCP and they will get LAN IPs from hub. This way you can add more
machines and also will not have issues with any protocol.
You can also buy a wireless router which you can plug either to your BSNL modem
or the (new) hub - that will give you wireless internet.
I have BSNL in my house and they have given me a wireless router - we use 2
laptops(wifi) and a desktop(Lan cable) in our house.
Correction: You don't get the LAN IPs from hub - what I meant was that you will
get the IPs from modem but connecting via hub is equivalent to connecting
directly to modem.