Network setup wizard doesn't work!

Hi,
I have Windows XP Home SP2 on both computers.
I've just reformatted the downstairs PC (mine is upstairs). It is connected through a USB cable to my ADSL Speedtouch 330 modem and through a crossover cable directly to my other computer. Before the reformat, I had a network with ICS enabled. Now, the network will not set up.

Whenever I try and create a 'Small of home office network' with the wizard on the host computer, it fails to do so if I select that 'this computer connects directly to the internet' (which it does). Some of the other options which don't 'fit' my setup say they have succeeded and yet no actual connection icon appears at all in my Network Connections...

Last time I had difficulty setting a network up but at least that time a 'local area network' icon appeared in my Netwok Connections folder so I could edit the settings. This time, even when I chose a different option for the network (and it succeeds), no icon appears at all!
On the upstairs PC, it recognises when the cable is unplugged or plugged in however has 'limited on no connectivity'. On the downstairs PC there is no evidence of a network existing at all.

There is also no ICS options in the Advanced tab of my internt connection properties.

Any help would be greatly appreciated!
I cannot stand no internet in my room!!

Thanks very much!
Kris