you may want to disable ICS if you are using the Dlink as a router. It may be conflicting.
Are you connecting through cable? DSL? If cable you may need to set up your comp name and workgroup (if using comcast) on the router and set each computer to a local workgroup.
My old DSL and current Cable both have/had "obtain IP address automatically". You can set Static IPs locally, but i use the DHCP feature of my router (linksys 4port).
Also if you are using DSL, you may need to set up a logon for PPPoE. My router, at the time, didn't have that in the instructions and it took me a week to find it in the config.
Here is my setup of 2 comps.
(If cable)Router " Host name = Comp name provided from Comcast(cc#####-A), Domain name = @home"
"Wan IP address = Obtain automatically"
CompA "obtain ip automatically" - comp name = compA(for simplicity's sake), workgroup "group"
CompB "obtain ip automatically" - comp name = compA(for simplicity's sake), workgroup "group"
(if DSL)
All you have to do is set the PPPoE setting, logon and password provided or selected to log onto the ISP network. I didnt have to set my domain and host name since i was using pppoe with my DSL.
make sure only TCP/IP are installed on both sys in network neighborhood too. other protocols "may" bog you down.
j