Well, 2 things.
Yes, I'm logged into admin, as when I go to user accounts, I see my mothers name, and then under it says "Computer Administrator".
I found the option to switch off the firewall. It says we strongly advise not to use this option or whatever, so I turned it off.
Still no luck though, the laptop is still not connecting.
Any more suggestions? Thanks.

so there are not firewalls on either computer then? try to run the "setup home and small business network" on the laptop, when you've done that tell us if the laptop can see the first computer, if the laptop can not see the first computer try a new network cable, plus are you using a "twisted pair" or "straight through" network cable to connect your laptop?.....

How do I know if I'm looking at my computer through the laptop? I've tried 2 Network cables, and both of them work as I've tried them with my computer. What do you mean by twisted or straight?

If you go into My Network Places on the laptop and you can see the other computer listed, double-click it and see if you can see any of the shared resources (assuming that you've already shared the C:\ drive for example on the other computer).

Alternatively, start up a Command Prompt and ping the IP address of the other computer, e.g.

Ping 192.168.0.2

You can find the IP address of a PC by typing IPCONFIG /ALL at the Command Prompt.

There are 2 types of RJ45 CAT5 ethernet cable - twisted pair and straight. One is for connecting PCs via a hub or switch and the other is for connecting 2 PCs directly between their network cards. I can't remember which is which unfortunately!

So if the packets come back, then, the laptop is connected?

Ok guys. I was switching wires and such, and I just found out something about my Cable Modem, which I think might be the problem. All I have plugged in right now, is a USB cable that's coming from the Modem. This is why the laptop isn't getting internet, because the Modem isn't using the Ethernet port or whatever. At least this is what I think. Is there a setting that switches it from USB to Ethernet, or something? I just thought it was strange when my MSN automatically logged on when all that's plugged in is a USB and no Ethernet.

no, the the router see both USB and rj45 at the same time so to speak, i'll tell you how i got mine set up, i got rid if my usb DSL modem and brought a DSL modem-router (2-in-1) i then connected the USB side of the router to my main PC and connected the RJ45 side of the router on the network card on my second PC, the router setup program was installed on my first PC, all works fine,

now getting back to network cables....
if you want to join 2 PC together for a simple network say for gaming then you would use a twisted pair cable (5 coloured cables inside the network cable 2 pairs swap places)
if using a router to join 2 PC then you use straight throw cable (colour cables go straight from one end to the other without being switched)

Well there's no USB port on my router, so how will it be able to split the connection when the internet is coming off of the USB cable from the modem, and you can't plug the USB into the router. That provides for only one computer to have it. I'm sure other routers have USB ports, maybe not, I don't know. My mom doesn't really want to buy a new router though, so I'm trying to fix this. So there's no setting on the "Modem" to switch it from USB to Ethernet, or whatever.

Is the router supposed to be able to connect to the Internet? (I thought that's exactly what a "router" meant). If so, I think Sprocket was suggesting that you don't need your other modem at all so the USB connection isn't an issue. Connect both PCs via a network cable from their network cards to 2 available LAN ports on your router.

If your router only has one LAN port, connect the main PC to it. Then fit a second network card to the main PC and connect it with a crossover network cable to the network card on the laptop.

If the router doesn't have the ability to connect to the Internet and it acts purely as a hub/switch, then you need to keep your USB modem, set that up on the main PC and then your main PC will get connected to the Internet OK. Then connect the PC and laptop together between the network cards using a crossover cable. Then that means you don't actually need the router .... erm, so I'm guessing this isn't the setup that you've got .....