how to configure networking during winXP install?

When installing XP, there is a screen where you answer the question "How will this computer connect to the Internet? (answers are telephone modem, DSL or cable modem, or LAN)

What effect does your answer have in the OS installation?

What setting does that configure, and what if I change later, what is the setting that I change? thanks.

Are you saying that there is no effective difference in the end result (in the network connection settings) whether you choose cable/dsl modem, or if you choose LAN?

I know it may not be important and is re-configurable later but I'm trying to find out exactly what effect the choice has in the installantion? There has to be some reason or the choice wouldn't be there. Thanks.

Thanks for your response, but I'm still quite confused.

Lets forget about the dialup option for now, and only consider the options for LAN, and DSL/Cable.

You said if I have a direct internet connection on my router, to click "DSL", not "LAN".

However, if my computer is connected to a router, than I am on a "LAN", correct?

I need to understand why I would choose LAN instead of DSL/Cable, and what the resulting difference is between the two choices.

Thanks.

Ok so are you saying the following?
1) that a "direct connection" to the internet does NOT involve a SOHO (consumer grade) router since they typically include a switch to enable more than one client computer?
2) that a "direct connection" does NOT utilize a cable/dsl modem?

And why would windows need to search the LAN connection to find the other clients?

Still confused but back to my original question.

My original question which I have restated several times, is "what setting does windows configure based on my choice", not "what setting should I select".

All I want is the name of the specific settings that are affected, in other words, does my choice make a differenced in whether the firewall or DHCP is enabled or something else?

Thanks.