networking

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I have 2 PCs..

the configuration are :

Computer A:Running Windows98
1st NIC - connected to cable modem, auto assign IP.( Currently: IP:
169.254.20.94
																subnet: 255.255.0.0
																Default gateway: )
2nd NIC - 	IP:192.168.1.1						
			subnet: 255.255.255.0
			gateway:

Computer B: running linux
1NIC - IP: 192.168.1.2
		subnet:255.255.255.0
		gateway: 192.168.1.1

Is this the correct setting (method) to share a modem and files? If not,
what is the correct setting/method?