Do this
ifconfig eth0 10.0.0.3 netmask 255.255.255.0
Since your default route is screwy you may want to do
route del default
first
then you should be able to
ping 10.0.0.1
and
ping 10.0.0.2
You can do this if you want a default route for internet access, your browser will be requesting ip addresses out of your network so this is required.
route add default gw 10.0.0.1
then edit /etc/resolv.conf
nameserver 24.18.24.15
substitute your local dns.
that's all thats required,
except for browser proxy settings for netscape, this depends on how you are sharing the connection, proxy port, etc. If your other computer, 10.0.0.2 works then use it's browser settings.