Your setup is similar to mine. Cable-Modem feeding router then feeding two machines. And oddly enough I have been working on my Apache server in VectorLinux not WinXP. My first time ever at any sort of webserver administration or html
The only difference I have is, I have static IPs on my two local machines, and make my router do DHCP with the cablemodem
DHCP Server: 192.168.1.1
is empty or ignored here
It would annoy me look up my localmahcine IP on a recurring basis. Not to mention trying to do loopback testing with a moving IP. (Granted the DHCP lease can be for several hours)
I had problems with enabling files for download. I could get them served up on a list when the browser pointed to the "server" machine, but no D/L would happen.