Make a LAN with 2 Laptops: Step-by-Step Guide

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Again, my advice would be - get off the cruddy Brand X ISP and get a real Tier One provider. They will probably be less expensive, provide better service, and offer more free services.
Unless of course that real Tier one provider is going through the "lets outsource, cause it make so much financial sense" game :)
 
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The cut and dry answer to your question is no you don't need a hub or a switch. All you need is a crossover cable like http://catalog.belkin.com/IWCatProductPage.process?Product_Id=9449" .

Microsoft has a lot of information about setting up a home network at http://www.microsoft.com/windowsxp/using/networking/setup/default.mspx" and if you google around for things like "connect 2 computers crossover cable" you'll get good results.
 
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16$ for a cable, wow.. what a waste of money