Windows 7 with wifi card connection to share ethernet with XP

As per the picture and title, I have a windows 7 with a wifi card for internet access. I have an XP tower right next to it connected via ethernet cable to the 7. Both XP and 7 are professional editions (64bits).

I want the XP to have internet access like a normal computer through this set up.

Side story to this set up: They're both Dell Poweredge 2900s I acquired that I use as workhorses for processing high volumes of data. They're located in my basement and the router is on the third floor (therefore wifi). They are remotely controlled from the third floor where my office is. This is all home, not for business/ professional.

The poweredges have a 1gig per second ethernet port, and I mean to share lets of data back n forth between them so the ethernet cross-cable is crucial.
Can this be done? Could you walk me through it? I've tried to solve it from different angles without any success so far.

I've tried ICS without success. I think all that came out of that was shared folders between the two PCs. I've tried bridging the WiFi/LAN which disables ICS. Nothing worked so far so I probably missed a step or did something wrong.
Thanks in advance.

I got that far, afterwards the XP no longer showed internet problem icon, but couldn't get onto any webpages.

What would preclude that at this point?

Thanks for fast reply sorry for slow response.

IPs all look good
The default and DHCP are 192.168.1.1
It has its own IP address same as above ending in .113
Two DNS server addresses
167.206.xxx.xxx

Pinged Google with default and the DNS you mentioned. In both instances I received 4/4 replies but internet explorer cannot find server.

Sharing folders is working though, so I moved over a Firefox installer and after installing it I can get onto webpages. The IE was from XP SP2, guess that can't get onto the web now or its default settings prevent it.
Thanks for your help. Glad to have this finally set up.

The sharing tab disappears when bridging any connection. This I noticed before the XP was even set up.

Despite the fact that file sharing and Firefox both work on the XP (I've already used FF on XP to navigate the web for drivers and such). Other issues still exist, like activating windows cannot make an internet connection, running the java installer (which I downloaded using firefox on the XP) cannot make a connection to download its components. So there seems to be still a major issue I think that may have to do with internet options. I don't think this brifge connection is automatically detected by XP/explorer but is recognized by the latest firefox.