Note that in order to configure your router it is best to have at least one computer that can connect to it through a wired connection.  Thus, it would be best to get an ethernet adpater card for the desktop (you can find them for less than $10 after rebate).  Next make sure that the dsl modem you are getting is not a USB-only modem - it should have an ethernet connection.  To set it up, you connect the modem to the WAN (Internet) port on the router and connect the desktop through its new ethernet card to one of the LAN ports on the router.  The laptop will connect through the wireless connection to the internet.  With this setup you will be able to share the dsl internet connection, share files between the computers and, with the printer connected to the desktop, share the printer with the laptop.  It doesn't matter which versions of Windows are running on each computer - that is transparent to the network.

Note that Linksys has excellent information on their web site - www.linksys.com and there is a lot of good information available at www.homenethelp.com

Steve

Thank you Steve for the advice it was very welcome and i'll let you know how I make out.

Jim

Steve

  thanks i took your advice and it worlks great. I hardwired the pc and went wireless with the laptop. One more question" when i set up my laptop i named my SSID, will i  still pick up the internet if i'm say in an airport with a hub  seeing that my SSID is different?

Jaames

Your computer will not be able to see your ssid from the airport.  It will only see what is available.  Therefore, it is not a problem. 

Steve