If you and a friend would like to connect as a network and both of you run Windows XP as your operating system then the following should help:

These days, people think first of using VPN connections when they want to connect one computer to another over the Internet. However, if both of you have regular dial-up modem connections to the Internet, there's a more secure way to connect your computers and you can bypass the Internet entirely! Windows XP can be a "dial-up server" that will allow another Windows XP computer to call it directly - modem to modem. Both Windows XP Professional and Home versions support this. Try this if you have a modem installed already:

1. Click Start and click Control Panel.
2. In the Control Panel, switch to Classic View and double click the Network Connections icon.
3. In the Network Connections window, click the Create a new connection link in the Network Tasks area on the left side of the Window. Click Next on the Welcome to the New Connection Wizard page.
4. Select the Set up an advanced connections option on the Network Connection Type page. Click Next.
5. Select the Accept incoming connections option on the Advanced Connection Options page. Click Next.
6. Put a checkmark in the checkbox to the left of your modem on the Devices for Incoming Connections page. Click Next.
7. Select the Do not allow virtual private connections option on the Incoming Virtual Private Network (VPN) Connection page. Click Next.
8. Click the Add button on the User Permissions page to add an account for your friend. Click Next.
9. On the Networking Software page, click Internet Protocol (TCP/IP) and click the Properties button.
10. In the Incoming TCP/IP Properties dialog box, select the Specify TCP/IP addresses option. We will assume that you are using the IP address 192.168.0.1 on your network card and that the subnet mask is 255.255.0.0 or 255.255.255.0. In the From text box, type 192.168.0.12. In the To text box type 192.168.0.12. Click OK.
11. Click Finish.

This next segment will show how your friend should configure their computer to call your computer. Once their computer calls your computer, both computers will act as if they are on the same network. This gives you better security than a VPN because you aren't going through the Internet, but watch out for those long distance charges!

This segment shows how to configure your friend's computer with a Dial-up Networking connection so that it can call the Dial-up server:

1. On the computer that will initiate the connection by calling the server (the dial-up client), click Start and then click Control Panel. In the Control Panel, double click the Network Connections icon (ensure that you're in "Classic View").
2. In the Network Connections window, click the Create a new connection link located on the left side of the window.
3. Click Next on the Welcome to the New Connection Wizard page.
4. On the Network Connection Type page, select the Connect to the network at my workplace option. Click Next.
5. On the Network Connection page, click the Dial-up connection option. Click Next.
6. On the Connection Name page, type a name for this connection. Let's call it Nancy's Computer. Click Next.
7. On the Phone Number to Dial page, type the phone number of the dial-up server. This is the phone number of the phone line your friend plugged into their computer's modem. In this example, we'll type 555-555-5555. Note that you might need to include a "1" or some other access number in front of the number. (You can call the number on the phone first, and if you hear your friend's modem answer, you've got the right number). Click Next.
8. On the Completing the New Connection Wizard page, put a check mark in the Add a shortcut to this connection to my desktop option and click Finish.
9. The Connect Nancy's Computer dialog box should pop up. Type the User name and the Password your friend set up for you and click Dial. You'll hear the modem dial and then connect. After the modem establishes the connection, your two computers are networked!