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ie PC1 <-> WHS PC <-> PC2 <-> router
^ can each PC connect to each other and the internet in this case?
Are you saying the WHS can act as a router, if so what benefits or features does it offer?
What is your source that WHS allows network bridging? The following thread suggests that there is no such feature in WHS: http://forums.microsoft.com/WindowsHomeServer/ShowPost.aspx?PostID=1744498&SiteID=50

Yes. That is the essence of a server. Why not connect the router, or better yet, the modem directly to the whs and let it share your internet connection instead of the router.

Like the OS would be on my internal HD but the backed up data would be on the external HD. ( for the external im thinking a 1TB USB 2.0…. )
Yes why not….

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I have been trying unsuccessfully to connect my computer to the shared network in order to view and use other people’s files. I can connect to the internet fine, but the shared file network, which everyone else is on fine, doesn’t work. My computer shows up as being on the network infrequently on other people’s computers but I cannot view any of the shared folders.
Generally, this is due to your computer being on a different WORKGROUP. Check to see. just right click on “My Computer” click the “properites” then click “Computer Name” tag. If the workgroup that shows there is the same as the other computers then you are good, if not change the workgroup. Also be sure your computer does not have the exact same NAME as anyother machine on the system. That should get it, You can always just run the network wizard from the Control Panel to set all these settings. Also you need to check your FIREWALL, to see if it is allowing your local network. You can turn it off to check, if your network works, turn the firewall back on and adjust the settings to allow your local network.

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