You can use a router or a switch.
If you're going to use a cable, you cannot use a straight-through cable... you need a CROSS-OVER or CROSS-CONNECT ETHERNET CABLE.
In a cross cable, the send wire crosses over to the receive on the second computer and back again the other way. (Think of it in telephone terms - the mic has to go to the earpiece...)
I'm testing out Reaper (love it so far) and have 2 computers connected to my main laptop DAW by a 10/100 switch. Both have a folder of my VST effects. One is a 2Ghz P4 with Win2k, the other is a 3Ghz P4 with XP. I did have to use fixed IP addresses on them, but otherwise ZERO problems, giving my laptop an extra 5Ghz of processing power.
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