[plug] network newbie

[sol]

I'm having my first crack at networking two computer: my PC and my bro's 
laptop. I want to setup the PC as a proxy server for the internet so 
that the laptop can share the modem (including initialising) connection. 
I'm reading the LDP PPP-HOWTO which seems helpful to a point but has 
left me a little stumped.
First of all I don't even know if the Xircom pcmcia ethernet card I 
bought this morning works. Is there a simple way of testing the to see 
whether a connection is working?
Secondly, the PPP-HOWTO tells me that I need a static IP on the server 
(the PC) which I can't just make up. So where do I get such an IP? I 
thought intranet IPs (192.168.x.x for a class C intranetwork)  were 
different from external internet IPs. Do I need to use IP Masquerading?

I'm now reading the Network-HOWTO, but its age shows a little. Can 
anyone point me in the direction of a good online HOWTO for networking 
two computers over an ethernet for a newbie?

Thanks,
sol