Hello anybody please tell me how do I connect my two computers running on XP...
I don't have any idea about NIC ,routers,switchs and all... these terms always confuses me...
So plese tell me from where should I start... also tell me why we are using these routers,hubbs etc... and what is the diffence between these all...

A router allows multiple computers to have the internet. Think of it as a plant, the router is the plant and the roots go to different computers. Instead of paying multiple computer bills (As many companies try to get you to pay for each computer that has the internet), jut connect all the cords to the router and bam. If it is a wireless router then you can use laptops and some computers (If you have the correct thing), wirelessly. I do not no much about hubs so I can't help you out there.

When you say connecting them do you mean like to be able to share folders?

If you used a hub or a switch, you would have to do a little more configuring to get things to work. Purchase a router, they aren't really any more expensive usually (maybe a few dollars), and they make setting up a small home network much easier.

You will also need a NIC (Network Interface card, aka ethernet card, or network card. Most likely, 10/100 fast ethernet or gigabit ethernet.) for each computer you want to put on the network. If you want to use wireless, you get a wireless NIC, but then you also have to make sure that the router you get supports wireless.

You can get a linksys 802.11G wireless router, with 4 or 5 ports for wired computers (Ethernet cards) usually for under $50, depending on where you go. You can usually find wireless cards for under $40, and ethernet cards shouldn't be much more than $20 if you just get a cheap one.