is it possible to set up a networking area just using a switch rather than a router? do i can still connect to the internet using this configuration?
It is not possible unless you had a layer 3 switch, which are very expensive. The reason for this is because switches are layer 2 devices and their main purpose it to switch traffic on the LAN more efficiently than a hub (which allows collisions). If you have an old PC that has a couple of ethernet cards you can load up something like Coyote Linux or some other free linux software that will turn that old machine into a router.
Google Easy Lunix routers. I have done this in the past when my hardware router has died on me and they work wonderful. The only drawback is that a PC will use more electricity than say a Linksys router will, but it will get multiple machines out onto the internet without having you pay for another IP.