to connect the two computers together?
Take a look at this KB from Apple, contains all you need to know about Migration Assistant in Lion
Are you using a regular ethernet cable, not cross-over, directly between the two computers?
No hubs or switches?
Am trying to transfer files from my old macbook 10.6.8 to new MPB 10.7.4. Would prefer to use Migration Assistant via Ethernet (faster than wireless, which I already tried; says it will take 45+ hours!) and have connected ether net cable to both machines. The new one says "Connected" in the networks panel, but the old one does not; seems to want to find internet. What network settings do I need to use to get the old one to see the new one? Thanks.