I don't know how microsoft did it, but configurting your network in Windows 2000 and Windows XP is FAR easier than in Windows 98.  There are more features available to you, but the interface is simpler.

Windows XP Note:  NetBEUI is no longer installed on your hard drive by default.  To proceed with this tutorial, you will need to copy the following files from your XP CD on to your hard drive

Everything we do on this page will take place in your network properties, also known as your 'Network and Dialup connections'.  This is where we will tell windows how to communicate with your new network.  One way to get to your network properties is to go to your desktop, right click on ‘network neighborhood’ and click properties (Network Neighborhood is in your start Menu for Windows XP). You can also reach it from the Start Menu.  Select 'Settings' and then 'Network and Dialup Connections'.

Right click on the network connection for your local area network.  The following three items should be present. Make sure each one is check.   This is called 'binding' software to your network card.  

1) Client for Microsoft Windows

2) File and Printer sharing for Microsoft Windows

3) NetBEUI

If you do not have these components, use the ‘install' button to add them.

You are finished configuring your network!  Now you need to configure your computer name and workgroup.

The 'computer name' is the name that computers on your network will see your computer as.  A workgroup 'groups' your computers together and helps them find each other.  Right click on the 'my computer' icon on your desktop and click 'properties'.  Select the Network Identification tab.  This screen shows your current computer name and workgroup.  If you need to change it, click the properties button.  Make sure you are part of a WORKGROUP and not a domain. 

Enabling shares on Windows 2000 and XP

To get the network neighborhood (network browser) working, you MUST enable at least one file or printer share on your computers.  (see Network Browsing explained )

Create a new folder on your hard drive and call it ‘shared’. Right click on this folder and select ‘Sharing’ from the menu that appears. Select “Shared as” and give the share a name or leave it as it is.  This share defaults to full control for the user group 'everyone'.  This means that anyone that can log into this computer will have access to this share.

To let others reach your new network share, you must give them access to it.  Follow the instructions on this link to add a Windows 2000 user