you can buy usb network cables now for a reasonable price i think dse have them...
this might be easier if you have little experience in computers (no offence but this question kinda gives it away

)
otherwise yes you are completely correct tho you may want to add the xp networking pack to the 98 computer from the xp disk if you stil lhave it (or run the networking wizard on the xp machine and then use a floppy disk to send the updates to the 98 machine- its pretty well explained in the wizard)
when you say talk to easch other what are you intending to do?
play games? share files? share internet?