Ok first the error :
Your computer has detected that the IP address 1.0.0.1 for the Network Card with network address FFFFFF000000 is already in use on the network. Your computer will automatically attempt to obtain a different address.
Means that both computers have the same IP address and the second one is trying to contact a DHCP server to get a new IP address. To fix this simply assign a new and different IP address to one of the computers.
The second error :
The server could not bind to the transport \Device\NetBT_Tcpip_{CB02698B-1263-45A5-9378-A877C851FC6E
Means that the computer isn't loading the server onto the netbios part of the TCP/IP stack.( Windows computers need netbios in order to see each other in a workgroup. Netbios can be ran over the protocols Netbui or TCP/IP. If the server doesn't load or startup you won't be able to connect to that computer from another one.)
Fixing the first error will get rid of the second.
One other thing if the IP address of the two computer are something like "1.0.0.X" and the gateway is setup for "192.168.1.1". Then the compters won't be able to talk to the gateway. ( The gateway is needed whenever the computers must talk to another computer that isn't on the same network segment. Therefore the computers must be on the same network as the gateway in order for them to use it.) Here's how I would set them up.
first computer
IP address- 192.168.1.2
Subnet mask- 255.255.255.0
Gateway- 192.168.1.1
second computer
IP address- 192.168.1.3
Subnet mask- 255.255.255.0
Gateway- 192.168.1.1
Good luck 
------------------
Comment heard from a Klingon programmer.
"Our users will know fear and cower before our software! Ship it! Ship it and let them flee like the dogs they are!"
[This message has been edited by Ghost_Hacker (edited 07-04-2001).]
Ferengi Rules of Acquistion:
Rule # 47 Don't trust a man wearing a better suit than your own.