i have a new xp that i want to install peoplepc into, but when i plug the computer into the phone jack the line goes dead, therefore i cant install the cd. when i plug my old computer into the same jack it works fine. im trying to set up a small network with 2 computers , why wont the phone lines work with the new computer ?

Not sure I understand your exact problem but I would imagine the PeoplePC software needs to be installed before you can hook up the line (or use it).

You should be able to install the software off the CD without being on-line.

Also I notice that PeoplePC offers 24/7 support.
http://www.peoplepc.com/faq/customer.asp

As to the Network here is a basic guide:

http://www.tweakhound.com/xp/basicxpnet/basicXPnet1.htm

Hope this helps.