Unable to get Internet Connection in Win XP machine thru switch

I have two desktop computers, one with win 7 and other Winxp. The internet comes thru ADSL modem, from it lan cable goes to a 8 port unmanaged switch, from it two wires comes out, one goes to each machine. Now in Win7 machine, I have a PPPoE dialer to connect to my ISP. I am successfully able to dial and get internet in Win7 machine. Now when I try internet in winxp machine, no internet so the question is any special settings required in winxp machine?

In Winxp machine I have not tried ICS & homegroup. I just tried to give DNS server as open or modem ip i.e. 192.168.1.1. I disabled all firewalls here, its able to ping the modem and win7 machine, open the modem page with no issues. So how to get internet here, plz guide.

When I was using a Dial-Up Modem I did have to enable ICS so a second computer could get the Internet. But that's different from ADSL which uses the copper wires of the phone but not the Voice Carrier signal the Dial-Up Modem [and Fax machines] uses. I think ADSL would be more of an always-on thing, no dialing needed.
Asymmetric digital subscriber line - Wikipedia, the free encyclopedia
I've been using Wireless DSL since 2003 as I couldn't get phoneline DSL at the time and still can't get it at any better speed, limit of the phone company.