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Go to Properties for My Network Places. Right click on the dialer you use for Internet dialup. Go to its Properties. Next go to the Advanced tab. Check the box "Allow other network users....".
I am guessing that you previously setup static IP addresses for both computers. The Internet Sharing feature will probably change the scheme you used on the computer with the modem so it will lose connection with the other PC. I also seem to remember that the PC with the modem becomes a mini-dhcp server so it can hand out the new address scheme. The easiest thing to do at this point would be to reboot the 2nd PC and test connectivity and then modem sharing.
HTH
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'17 Cayenne
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