Network with WInME and Win2000 Performance Problem

I just setup my Basic Network at home for testing before I actually get into the other rooms in the house. I just connected to computers together without hub or router. I got it to share folders, printer and internet connection. It doesn't seem to be performacing the way I wanted. It doesn't have a great connection between 2 computers. Folders pop up kind a late. And sometime it takes a long time before each other can see it. I want to make sure my Win2000 to be the host of the network, HOW? And I want it to be the one that control the internet connection once I get DSL or Cable. HOW? I notice that Pacific Bell is offering an internal DSL Modem to their customers right now, will it make any different when making my Win2000 to be the host. Or if I use a external modem? I guess my question is that how would I be able to tell if my win2000 is the host or not, and how to make sure that it is controlling everything on the network.

Win2k have ICS. Every Windows since Windows 98SE have ICS.