You CAN setup a network with XP on all machines with internet sharing etc no problems with the right hardware but if you need to, add/remove users, setup special access rights, create workgroups, etc like I think your project will require then you must use a server OS.
From the Microsoft products you can either go for win2000 server or win2003 server but don't let that scare you if you can get/borrow the CDs because installation is very straight forward and you'll just find that they have removed some useless to networks tools from standard windows and replaced those with special network managing tools that can be found under the "Administrative Tools" menu etc.
They are all VERY easy to use so don’t be afraid and besides the idea is to pick up experience by installing and using an industry standard OS. (NB: Don’t confuse “Windows 2000” with “Windows 2000 Server” ok?)
Trust me, just install it and find the Administrative Tools… easy as pie!
Linux is released in many variations by many companies (ie: TopHat) but you’ll have to find, download, and install Server components to match what Windows2000 server can do. Or perhaps get a special enterprise version if it exists… I can’t help you much in this area due to luck of experience but have a chat with admin who MAY be a Linux junkie.
You only need ONE router that also supports wireless LAN. Visually they have a little antenna or two so they are easy to distinguish but mind you the antennas will soon disappear just like in mobile telephony as technology gets better.
With regards to IP addresses, if you enable something called “DHCP” (on by default) then each machine automatically gets an IP address by Windows but if you disable it then you have to enter them for each machine. The kind of ADSL connection your network will receive from the ISP will also be decisive here... for example you may have paid for a number of fixed (static) IP addresses which would fall under a range so you’ll have to enter the numbers of that range in each station.
The Router of your link is a “preferred” industry brand but it should be expensive because it also supports VPN. (virtual private network). This is useful as an example, if you need to dial in to work from home over an analog line and log onto your employer (network) for whatever reasons. I don’t think you need this feature in your project from the sounds of it.
One of these products should be more suitable for you…
http://www.linksys.com/servlet/Satellit ... torWrapper
That’s all for this post because I’m tired of typing.