Advice required on best method to link 2 computers

All, I have a new PC Pent 4-2.3ghz 1024meg Ram running win XP Pro and a second machine, Celeron 400sec running Windows 98SE 256k ram.

I intend to keep the old machine and use it for file backup as I have recently replaced the hard drive, installed a new modem and a 10/100 ethernet card.

What is the best suggestion to link the machines to enable efficient file transfer and backup.

I have tried setting up via a x over cable but could not manage to get it to work, There are programs avail eg, Laplink etc or am I better in purchasing a hub/switch and use the ethernet cards on both machines.. Will this work o/k or is there any better solutions.