1. Each machine will need a NIC (network interface connectors).
2. a hub
3. router
4. switch
5. cables (crossover / straight through)
Deciding which cable to use:
here's a small chart that will give you an idea which cable should go where:
computer to computer - crossover cable
computer to hub - straight through cable
hub port to hub port - crossover cable
hub uplink to hub port - straight through cable
computer to broadband router port - straight through cable
computer to switch - straight through cable
computer to cable modem - crossover cable
cable modem to router - crossover cable
hub uplink to switch port - straight through cable
computer to computer - crossover cable
computer to hub - straight through cable
hub port to hub port - crossover cable
hub uplink to hub port - straight through cable
computer to broadband router port - straight through cable
computer to switch - straight through cable
computer to cable modem - crossover cable
cable modem to router - crossover cable
hub uplink to switch port - straight through cable
note:
Some hubs share the connection on the Uplink Port with the port next to it. Some hubs and switches use a switch or button to enable or disable the Uplink Port. Check your product manual to see how to do this.
Maximum cable length:
Maximum cable length for Ethernet depends on what kind of Ethernet you are talking about! Here are some details on the most popular kinds of Ethernet. (UTP = unshielded twisted pair)
Maximum cable length for Ethernet depends on what kind of Ethernet you are talking about! Here are some details on the most popular kinds of Ethernet. (UTP = unshielded twisted pair)
Gigabit Ethernet (over copper), 1000baseT
Speed: 1000 Mbps
Max Len: 100 Meters
Cable: UTP, RJ-45 connectors
Fast Ethernet, 100baseT
Speed: 100 Mbps
Max Len: 100 Meters
Cable: UTP, RJ-45 connectors
Twisted Pair Ethernet, 10baseT
Speed: 10 Mbps
Max Len: 100 Meters
Cable: UTP, RJ-45 connectors
Two computers scenario:
If you only have two computers, you will only need two nic's and a crossover cable. If you also require both computers to have internet access, then you could either
(a). Install another NIC (connect it to the cable/DSL modem with a crossover cable) or fax modem in one and connect it to the internet, then use a software proxy, ICS, Wingate, etc to share the internet.
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More than two computers scenario (hub/switch cascading):
With more computers you will need a hub/switch and straight through cables, connect all computers to the hub/switch with straight through cable. If you run out of ports then add another hub/switch to your network. Connect the uplink of one hub/switch to a port on the other hub/switch using a straight through cable, or connect port to port using a crossover cable.
If you have more than two hubs/switches, then connect all the hub/switches using uplink ports and straight through cables, to regular ports on a main hub/switch.
If you require internet connectivity:
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(a) Install another NIC (connect it to the cable/DSL modem with a crossover cable), or fax modem in one machine and connect it to the internet. Use a software proxy, ICS, Wingate, etc to share the internet. Now connect the gateway computer and the rest of the computers to the hub's ports using straight through cables.
(b) Using a broadband router, connect a cable modem with a crossover cable to the WAN port of the router, then connect the other computers to the router's LAN ports with a straight through cables.If you do not have enough ports then get more hub/switches. Connect the uplink ports to the router's LAN port with straight through cables and connect your computers to the hubs/switches. 


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