The downstairs PC is a Dell with XP (Home) SP2, the upstairs PC is an old Aries PC running Win98SE. The Dell has a LAN port on the back of it but for the Aries we needed to slot in a PCI card with a LAN port....
The router is connected to the net using normal phone cable then each PC is fed a connection from the router using cat5 cable, yes.
The Router does also have a USB port on it, and I had been told at some point this could be for connecting the printer too so both PC's would print via the router....