if you have a router or switch you can use straight cable and connect these two machines, if you do not have either then you can use cross cable to connect .
do the following on the Linux box on using which you are connected to Internet
Flush all the present rules
iptables -F
iptables -t nat -F
iptables -t mangle -F
Delete any rules you have
iptables -X
iptables -t nat -X
iptables -t mangle -X
service iptables save
service iptables restart
enable packet forwarding
echo "1" > /proc/sys/net/ipv4/ip_forward
to make this change permanent you can copy the above line in /etc/rc.d/rc.local
iptables -t nat -A POSTROUTING -o eth0 -j MASQUERADE
service iptables save
service iptables restart
now try to browse using the xp laptop , be sure they are in same subnet and routing tables is pointing to the linux box.
I'm not quite clear on what you're asking. Is your Fedora 16 system connected to the internet via wifi, and do you want to make this internet connection available to the Windows machine via LAN/ethernet?