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Finally I figured out the correct settings for connecting my Desktop and Laptop to the DSL modem. Desktop is connected through network card. A static ip was given over the DHCP range (192.168.254.101) The DNS server was set to the DSL modem’s ip (192.168.254.254) and NetBIOS was set to ‘Enable over TCP/IP’. Default gateway was set to the ip of modem. All the devices should start with 192.168.254.xxx. Laptop is connected through wireless card. Ip and DNS were set to DHCP and NetBIOS was left to DHCP server. Now both are working fine.