So you have one LAN card (call it eth0) connected directly to your cable modem, and the other (eth1) to the internal LAN (or your friend's PC)?
Create a route for your internal LAN to make eth0 the default gateway (if it isn't already) using 192.168.0.1 as the internal facing IP of your cable modem:
Code:
route add default gw 192.168.0.1 eth0
enable routing, and point your friend's PC to your linux box's eth1 interface's IP to use as a gateway.
There's also a gui interface to set up all your networking parameters:
system-config-network