98 First Edition pc to XP SP2 pc - Ain't workin'!

Hey there guys, I've asked a few questions here before and had excellent
results, so here I go again...

I've had a network with 2 XP SP2 computers for a while now, and everything
is great, Internet-file sharing all work great.

A friend of mine has a computer in the back room, and he's never upgraded
from Win98, the first edition. I had an extra network card, a NetGear FA311,
and we installed it and connected his machine to the router.

Nothing I've tried is working. Although I can for some reason see his
computer in the workgroup, I can't access it and his can't see or access
either of these computers or the internet.

I've checked probably 20-30 sites for info on 98 networking to XP and
everyone says configuring through a LAN is fine and easy.

I really am at my wits end with this, I've been fiddling all day and this
room is 101 degrees hot now. :P I'd appreciate any guidance on setting up
the network on the 98 side, how the Network settings window should appear and
with what things in the window.

Thanks a lot, look forward to some much-needed help!