Configuration (PCs are desktops running XP):
Internet<---Internal Modem<---PC1<---Ethernet----Linksys
Router<---wireless---PC2        
                   
PC1 = 192.168.0.1
Router = 192.168.0.99 (DHCP disabled)
PC2 = 192.168.0.2

Static IP addresses, Firewalls disabled, Not using 802.1x authentification,
PC1 Sharing enabled and set to allow others to connect to internet thru PC1,
PC2 set to connect thru broadband connection, PC2 file and print sharing
enabled, using WEP

I attempted DHCP but could not figure out how to get the PC to pick the
domain of the router....and they kept assigning addresses outside the domain,
so I switched to static.

Situation:  
1.  PC2 can see PC1 in the workgroup and can access files on PC1
2.  PC1 can see, but not ping, PC2 and cannot access files on PC2
3.  PC2 cannot gain access to the internet

I enabled logging on both pcs but the logs didn't provide any insight.  I
have searched the internet and tried every conceivable thing I can think
of....man is this frustrating.