OK, you almost got it, and it is definitely possible; this is what I use at home...
The windows machine must be set for connection sharing/home networking, as you seem to have.
The Linux machine IP should be 192.168.0.2, the Linux default gateway is 192.168.0.1, and the broadcast address is often 192.168.0.255. I think you have the subnet mask correct, but may end up trying 255.255.255.255 as well.
You may need to put some info into a few other files on the linux machine, like etc/nsswitch.conf (contains the primary and backup nameserver IP's of the ISP or perhaps the university in this case), and you *may* need to see that your etc/host and /etc/hostname files are correct.
Now, provided you have the ethernet card in the linux machine running, and with the correct module/driver loaded, you should see signs of life
As a last resort, and if you haven't already, run the XP connection/networking wizard to set up home networking with the two computers connected and both turned on and ready to go..