ICS does not work debug info

My ICS does not function properly. Host W98 SE and client XP.
Here are some debug info from some utilities which I coloected fro the web:
The xp client has access to limited web sites (www.google.com is okay,
www.hotmail.com is not okay ...).

Why are some client connections in time wait.
==================================================
Protocol : UDP
Local Port : 138
Local Port Name : nbdatagram
Local Address : 192.168.0.1
Remote Port :
Remote Port Name :
Remote Address :
State :
==================================================

==================================================
Protocol : UDP
Local Port : 137
Local Port Name : nbname
Local Address : 192.168.0.1
Remote Port :
Remote Port Name :
Remote Address :
State :
==================================================

==================================================
Protocol : UDP
Local Port : 53
Local Port Name : domain
Local Address : 0.0.0.0
Remote Port :
Remote Port Name :
Remote Address :
State :
==================================================

==================================================
Protocol : UDP
Local Port : 67
Local Port Name : bootp
Local Address : 0.0.0.0
Remote Port :
Remote Port Name :
Remote Address :
State :
==================================================

==================================================
Protocol : UDP
Local Port : 2050
Local Port Name :
Local Address : 0.0.0.0
Remote Port :
Remote Port Name :
Remote Address :
State :
==================================================

==================================================
Protocol : TCP
Local Port : 138
Local Port Name : nbdatagram
Local Address : 192.168.0.1
Remote Port :
Remote Port Name :
Remote Address : 0.0.0.0
State : Listening
==================================================

==================================================
Protocol : TCP
Local Port : 137
Local Port Name : nbname
Local Address : 192.168.0.1
Remote Port :
Remote Port Name :
Remote Address : 0.0.0.0
State : Listening
==================================================

==================================================
Protocol : TCP
Local Port : 139
Local Port Name : nbsession
Local Address : 192.168.0.1
Remote Port :
Remote Port Name :
Remote Address : 0.0.0.0
State : Listening
==================================================

==================================================
Protocol : TCP
Local Port : 2050
Local Port Name :
Local Address : 0.0.0.0
Remote Port :
Remote Port Name :
Remote Address : 0.0.0.0
State : Listening
==================================================

==================================================
Protocol : TCP
Local Port : 53
Local Port Name : domain
Local Address : 0.0.0.0
Remote Port :
Remote Port Name :
Remote Address : 0.0.0.0
State : Listening
==================================================

==================================================
Protocol : TCP
Local Port : 67
Local Port Name : bootp
Local Address : 0.0.0.0
Remote Port :
Remote Port Name :
Remote Address : 0.0.0.0
State : Listening
==================================================

==================================================
Protocol : TCP
Local Port : 1025
Local Port Name :
Local Address : 192.168.0.1
Remote Port : 139
Remote Port Name : nbsession
Remote Address : 192.168.0.2
State : Time Wait
==================================================

==================================================
Protocol : TCP
Local Port : 139
Local Port Name : nbsession
Local Address : 192.168.0.1
Remote Port : 3622
Remote Port Name :
Remote Address : 192.168.0.2
State : Time Wait
==================================================

==================================================
Protocol : TCP
Local Port : 139
Local Port Name : nbsession
Local Address : 192.168.0.1
Remote Port : 3623
Remote Port Name :
Remote Address : 192.168.0.2
State : Time Wait
==================================================

==================================================
Protocol : TCP
Local Port : 139
Local Port Name : nbsession
Local Address : 192.168.0.1
Remote Port : 3624
Remote Port Name :
Remote Address : 192.168.0.2
State : Established
==================================================


Process PID CPU Description Company Name
Idle 0x0 97.93 System Idle Process
KERNEL32.DLL 0xFF8F748D 0.20 Win32 Kernel core component Microsoft Corporation
MSGSRV32.EXE 0xFFFFB4E9 Windows 32-bit VxD Message Server Microsoft
Corporation
EXPLORER.EXE 0xFFFFCC3D 0.30 Windows Explorer Microsoft Corporation
TASKMON.EXE 0xFFFEF345 Task Monitor Microsoft Corporation
OSA.EXE 0xFFFEE07D
SYSTRAY.EXE 0xFFFEB1D1 System Tray Applet Microsoft Corporation
WMIEXE.EXE 0xFFFCE8B1 WMI service exe housing Microsoft Corporation
BLSTAPP.EXE 0xFFFEB0E9 BlasterControl Application Creative Technology Ltd
CMMPU.EXE 0xFFFE97B5
ptsnoop.exe 0xFFFE976D PTSNOOP.EXE PCtel, Inc.
INTERNAT.EXE 0xFFFE84E1 Keyboard Language Indicator Applet Microsoft
Corporation
FINDFAST.EXE 0xFFFDDF79 Microsoft Office Find Fast Microsoft Corporation
HEALTHAGENT.EXE 0xFFFD8849 0.10 HealthAgent MFC Application 0
ICSMGR.EXE 0xFFFD56F5 Microsoft Internet Connection Sharing
Manager Microsoft Corporation
LOADQM.EXE 0xFFFD38CD Microsoft QMgr Microsoft Corporation
RNAAPP.EXE 0xFFFB20D9 Dial-Up Networking Application Microsoft
Corporation
TAPISRV.EXE 0xFFFB23F1 Microsoft® Windows(TM) Telephony
Server Microsoft Corporation
PROCEXP.EXE 0xFFFD10D9 1.48 Sysinternals Process Explorer Sysinternals
MIXER.EXE 0xFFFD06E1 Mixer C-Media Electronic Inc.
IEXPLORE.EXE 0xFFFCD105 Internet Explorer Microsoft Corporation
DDHELP.EXE 0xFFF91575 Microsoft DirectX Helper Microsoft Corporation
NOTEPAD.EXE 0xFFFC19CD Windows Notepad application file Microsoft
Corporation
CPORTS.EXE 0xFFFA3241 CurrPorts NirSoft
mmtask.tsk 0xFFFFC8DD Multimedia background task support module Microsoft
Corporation
MPREXE.EXE 0xFFFFB969 WIN32 Network Interface Service Process Microsoft
Corporation

Process: ICSMGR.EXE Pid: FFFD56F5

Type Name
Device ICSHARE
Device ICSHARE
Device WSOCK2
File C:\WINDOWS.000\ICSLOG.TXT
MappedFile rpcrt4sharedmem
Mutex svrapi
Mutex OLESCMLOCKMUTEX
Mutex Winsock2ProtocolCatalogMutex
Mutex Winsock2ProtocolCatalogMutex
Mutex MPRMutex
Process ICSMGR.EXE(FFFD56F5)
Thread ICSMGR.EXE(FFFD56F5): FFFCDA25
Thread ICSMGR.EXE(FFFD56F5): FFFCD9A9
Thread ICSMGR.EXE(FFFD56F5): FFFCC159


Icslog.txt
05/07/2005 20:57:02 - Internet Connection Sharing log opened.
05/07/2005 20:57:03 - The automatic addressing server has been started.
05/07/2005 20:57:03 - The Internet Connection Sharing driver is running.