Cannot see my XP workgroup....

I have recently installed sp2 and since then I have not been able to see the computers in my workgroup.

I have PC1 which connects directly to the internet via usb cable modem and is connected to PC2 via network cable.

I had to manually reset the IP address on PC2 as it was in the wrong subnet.
PC1 is 192.168.0.1 and PC2 is now 192.168.0.2 ( was 169 ....something originally )

I applied the microsoft patch which claims to fix this but still no joy.

PC1 can ping PC2. PC2 request timed out when pinging PC1.

Please help somebody.....I'm at my wits end with this.

>> PC1 can ping PC2. PC2 request timed out when pinging PC1.

Sounds like there is no gateway setup on PC2
On PC2 -
Open Control Panel,
Double click Local Area Connection
Select Internet Protocol TCP/IP
Click Properties
Click Advanced at the bottom of the page
Click Gateway >> Add
Enter 192.168.0.1
Click OK

If that doesn't work,open a DOS box and get your current IP settings on PC2
Click Start
Click Run
Type cmd
In the DOS box that opens type ipconfig /all
Copy and paste all the info into a follow up post on this thread
While you're at it, get the IP details for PC1 by repeating the above steps and post those also