Can't get ICS to work win98 host xp client - winsock problem?

I have setup simple 2 pc ethernet network with win98 pc as host and XP SP2
as client.

Files can be shared OK. I installed ICS on the host. Host connects to
internet OK, and file sharing between host and client is still OK, but
cannot connect to internet from the client, even with firewalls stopped on
both host and client.

host is 192.168.0.1 subnet 255.255.255.0
client is 192.168.0.2 subnet 255.255.255.0

Cannot access internet from client using url or ip address.

Some things I've noticed:

1. When I login to the host ("Windows Family Logon") I get "no domain
servers are available to validate your password. You may not be able to gain
access to some network resources". I'm then prompted for network login twice
then logon occurs anyway. BTW - tried changing primary logon to "Client for
Microsoft Networks" but that would not log me on at all.

2. The program (MCAFEE) cpd.exe causes an invalid page fault and closes.

3. Since setting up the network MCAFEE shows new programs in network
activity:

- Distributed COM services v4.71.2900
- Run a DLL as an App v4.10.1998
- SSDP Service on Windows Millenium v4.90.3003.0
- Windows explorer

Can't find anything on MS that would help resolve this - any suggestions
welcome!

Thanks