I will try to explain the setup:
1) I have 2 computers linked over Lan via a 100mhz hub, this is working ok for filesharing & playing lan games etc. (Loca Area Connection 1 - tcp/ip 192.168.0.1)
2) I have an ADSL connection using a USB router, connected to what has to be the Host. (Local Area Connection 2)
3) I have ticked ICS in the Local Area Connection 2.
4) The client has Local Area Connection 1 only (tcp/ip 192.168.0.2).
I hope this helps.

Thanks.
PS. When client is trying to connect to web the bottom left corner displays:
Connecting to site 66.102.7.104 - who knows what the heck this is????