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Spyware over a network...

i will try to put it into perspective:

computer 1 gets infected with spyware. computer 1 is connected by an ethernet cable to computer 2. will the spyware travel to computer 2 if it is connected to computer 1 (the source of the infection)?
 
Some spyware/virii can. Some can't.

It just depends upon how complex the programmer deciding to make his little present.

To answer your question though, yes, it is possible.
 
Your question is a bit open-ended.

For a piece of spyware on computer 1 to "infect" computer 2 one of a couple things would need to happen:
1. The spyware has gained credentials that are valid on the other computer (i.e. a user with admin rights to computer 2 logs into computer 1)
2. The spyware attacks a voulnerability on computer 2 and uses that to install itself (just like a lot of internet worms)
 
Software that behaves in that way (attempting to infect other computers on the same network using a vulnerability that, in general, does not require the user to do anything other than not have the latest patches) is usually referred to as a "worm," as far as I know, but there could well be some spyware that contains a worm, or spyware that behaves as a worm.
 
spyware -by definition- will not install itself from one PC to another. It depends on the user on each PC to install itself.
Worms/viruses - install/replicate themselves.
 
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