Hello m8,

You can do internet connection sharing, but win98 + Win XP 64 could be a very testing process.

Now,

A router is a good option, but it depends mainly on who your internet provider is. If you have a USB modem, then you'll need a router that supports it, ideally with 4 ports and wireless antenna's. If you have a cable modem that connects to your network card on your pc, then a linksys wireless router would be perfect.

Transferring files from pc to pc is quicker via ethernet cable. Surfing is a little quicker as is downloading, but providing you get a good wireless adaptor, you should be alright. But, as you previously mentioned, XP 64 has driver issues.

So, it depends mainly on who you use for the net, and what sort of setup you have.

HTH