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In data transmission there are two type equipment required.
DTE is the interface that a computer uses to exchange data with a modem or other serial device. Computers, smartphone and printers are the DTE devices.
A DCE is a device that sits between two or more DTE. Routers, data switches and modems are DCE devices.
Straight trough cable was used to connect two different type of devices like DTE to DCE and DCE to DTE, but now devices are intelligent to detect and work any type of cabling.
Whenever you connect to same type of devices you will need the crossover cable. For example you need to connect DTE to DTE (Computer to Computer) or DCE to DCE (Switch to Switch, Router to Router) you will required Crossover cabling.
But now days, due to implementation of intelligent technology in routers and switches, they automatically detect crossover and straight trough cables, if you connect same DCE to DCE with straight cables it will work.
Unlike data switches and router, for the computer to computer communication you will need only crossover cable.
If you want to connect two computer with crossover cable, first you set both computer to Obtain IP automatically via DHCP, and restart, after restart you connect computers trough crossover cable.
For Windows XP, goto Run and type netsetup and follow the Network setup wizard, after finished restart required.
Materials Needed:
- Two computers with Network Interface Cards- CAT5 Crossover cable- Operating System with network support Step 1 To create a crossover network connection, both computers must initially be turned off and unplugged from the wall socket. Step 2 Take one end of the crossover cable and plug it into the Network Interface Card port of one computer. Repeat the same process with the other end and connecting it into the other computer system. Make sure that both connections are secure. Step 3 With the physical crossover connection clearly established, turn on both computers without preference on which computer must be turned on first. Step 4 Once the log in screen has loaded, sign in as you would normally do to get to the Windows desktop. Repeat the procedure on the other machine so that both computer systems are now at the Windows desktop screen. Step 5 At this point, wait and make sure that all startup programs have already loaded. Usually this means that the mouse pointer is already in an arrow shape rather than the hour glass. Another indication is that the hard drive is no longer emitting a type of whirring sound. Step 7 On the context menu, select the Properties option. This will open the Properties window. Click on the Computer Name tab. Step 8 Verify that the value for both Workgroup is the same. Otherwise click on the Change button and make the necessary changes to make them identical. Click on the OK button to save the changes. Step 9 You will be prompted to restart the machine. Click on the OK button to allow the machine to restart. Make sure to reboot the other computer system as well. Step 10 After both machines have restarted, they will now be under the same Workgroup. Just enable sharing of the drive, folders, or files you want and the connection is now complete.
link the cable to both computers then use static ip address in same subnet to those computers 1 - 192.168.1.102 - 192.168.1.20and then share your files- folders between them create user account password at computer1 and computer2 the system will ask to give them while you try to access and copy data from one computer to another
onnect the crossover Ethernet cable to the LAN (RJ45) ports of both the PCs.
PC - 1
IP Address - 192.168.0.2 Subnet Mask - 255.255.255.0
After the connections and settings have been saved, both the PCs should be connected by LAN. You may need to restart both the PCs. You can check if the connection is working by pinging one PC from the other. For PC-1, Start > Run > CMD > ping 192.168.0.2 For PC-2, Start > Run > CMD > ping 192.168.0.1 You can view the PCs in My Network Places. You can now use this LAN connection to play multiplayer games or share files. You can also map a drive on another PC to a local drive by using My Computer > Tools > Map Network Drive > Select Drive Letter and network path of the shared folder on the other PC.
make sure that the cable is crimped properly as in above image.
then go on for IP & DNS Address.
its simple
Plug each end of the crossover cable into a network port on the back of each computer.
On one of the computers that's running this version of Windows, do the following:
Open Network and Sharing Center by clicking the Start button 
, and then clicking Control Panel. In the search box, typenetwork, and then click Network and Sharing Center.
In the network map at the top of Network and Sharing Center, double-click the Unidentified network icon. (If you have more than one network, this icon will be labeled Multiple networks.)
If network discovery and file sharing are turned off, in Network, click the information bar containing the following message: "Network discovery and file sharing are turned off. Network computers and devices are not visible. Click to change...," and then click Turn on network discovery and file sharing. 
If you're prompted for an administrator password or confirmation, type the password or provide confirmation.
easiest way (in case if we sure that we are using proper cross-lan) is:
- Computer A:
IP Address: 10.1.1.1 Subnet mask: 255.255.255.0 Gateway: [leave-it-blank] DNS Servers: [leave-it-blank]
Computer B:
IP Address: 10.1.1.2 Subnet mask: 255.255.255.0 Gateway: [leave-it-blank] DNS Servers: [leave-it-blank]
Since these 2 computers are directly connected, no gateway and DNS servers are required to be configured.
here we are
The cross over cable is used when 2 similar devices are to be connected the transmit of one computer is connected to the recieve of the 2nd computer, and the recieve of the first computer is connected to the tranmit of the 2nd computer.
