Well, putting aside whether you've got a smart setup, I believe your problem is being caused because both systems have the same network IP: 192.168.0.1 . That's the default address assigned by ICS to the 'gateway' system to the Internet. If you manually set the other system to the same IP, then you're definitely going to have problems. Set up ICS on the gateway machine and let it create a sharing disk, then use it to set up the other machine.
<font color=green>****</font color=green> Never Assume <font color=red>ANYTHING</font color=red> <font color=green>****</font color=green>