Not sure what networking protocol your intending to use but
Microsoft's old windows to windows peer networks used netbeui protocol which is not included in the standard setup of XP. I beleive ME is the old one and uses netbeui to connect peer to peer. Check MS tech support on how to add netbeui protocol to XP machines, you have to copy some files and move them. Then setup peer to peer using netbeui and internet using TCP/ip. Thats how I have it working on my machines which also include a few older windows 98se, 2000, and xp machines. Hope it helps.
JUst wanted to correct something I mentioned here. Netbeui is the old name of the netbios protocol from pre windows days and microsoft lan manager. They changed the name to netbios later on, but netbios is still not included with XP and has to be added. Just hope no confusion there. Lots of good ideas here. take care.