Hi,
The way you set them up is correct. If the destination IP is on the same subnet (as it is) then TCP/IP just uses ARP to get the physical MAC address of the target adapter and sends to that physical address. If its not on the same subnet then routing and gateways come into play.
Firstly, make sure win is really working with the settings you gave it - i.e. do the gui winipcfg command on winme and 'dos' command 'ipconfig /all' on win2k (can use wntipcfg from reskit if installed).
If it all looks ok, after trying to ping do 'arp -a' from a command windows to see if the mac address resolved. Or try another network related command such as 'net view \\192.168.0.1' .
Otherwise it could be the cables - are they both cat5 straight-through cables (patch cables) ? If one/both of them were crossover cables it wouldn't work. An alternative way of connecting two nics without using a hub (which in your case would rule out a faulty hub) is to use such a crossover cable directly from one PC's nic to the other.
Rgds