Theoretically yes, however I'm trying to do the same thing with four computers while I wait for cable service, and I can use it fine as a switch, but I can't seem to get it to share the dial-up connection. Something about the setup keeps the computers without the connection from finding the computer with the dial-up conection. Confusing, uh...
Just saying that to let you know that there are some potential problems possible. I personally hjave tried disabling DHCP on the router, re-installing Internet connection sharing, etc, but The lan part works great...
Please post if you get it to work and sharing a dail-up connection....