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Peer to Peer XP Home network with switch not working.

Trying to network two laptops with a switch (peer to peer). Both computers have workgroup set to workgroup.  I set the IP address on laptop1 to be 192.168.0.1 with mask 255.255.255.0. For laptop2, I set the IP address to 192.168.0.1 with mask 255.255.255.0.   The swith shows connctivity and both comptuers show the windows icon as connected to the assigned static IP addresses. Cables work when connecting to the internet.

In My Network Places - View workgroup computers. On laptop1, I show both laptop1 and laptop2 icons. When choosing to open the laptop2 icon I get the error message.  On laptop2, I show only the laptop2 icon.  

Error Message: laptop2 is not accessible. You might not have persmission to use this network resource. Contact the administrator of this server to find out if you have permissions. The network path was not found.

 
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tkfast

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trgarcia

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Thank you for you suggestion, however I am not trying to connect to the internet. I am trying to share files between two computers connected to a switch to share files peer to peer only.
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Sorry for the confusion.  I typed the IP address for computer 2 incorrectly in my original question.  I set the IP address on laptop1 to be 192.168.0.1 with mask 255.255.255.0. For laptop2, I set the IP address to 192.168.0.2 with mask 255.255.255.0.  I just checked my laptops to confirm I did not do the same typo in the IP address. They are corrrect with laptop1 as 192.168.0.1 and laptop2 as 192.168.0.2.  I am now reading the link that  tkfast provided so I can understand why each computer must have the same account name(s) on each computer for sharing.  
I read the Microsoft article that tkfast provided and tried adding the user accounts to each computer so they are the same. This did not work.  I added my desktop with XP pro to the hub with IP address 192.168.0.3 and it worked (I was able to share files with laptop1 and the desktop).  It only has a user named desktop. Therefore the theory in the microsoft arcticle is just theory and not fact.

I decided to ping each computer and found that laptop1 and desktop would properly ping both their IP addresses and the computer host names.  However when pinging laptop2, it would only properly ping to the IP address.  Pinging to the IP address of laptop2 gave an error stating it was not able to resolve the host name.

I decided I should compare the desktop's local area connetion settings with the local area connection settings of the laptop.  Laptop1 and the desktop have the same settings.  However, laptop2 had an extra protocol in the This connection uses the following items: listing. The extra protocol listed was Microsoft TCP/IP version 6. I unchecked this item and a warning box stated that it would also have to remove Client for Microsoft Networks from the same list. This action removed the check in the check box for Client for Microsoft Networks. Next I rechecked Client for Microsoft Network.  Then I reviewed and list and found that Microsoft TCP/IP version 6 was now unchecked.

I rebooted laptop2 and tried the connection again. I was then able to view all 3 computers in my network places - view workgroup computers. I was also able to click on each of the workgroup computers and use the shared folders.