Right, you do not need to know about, or do anything with hosts.ics yourself.
When you enable internet sharing on XP it is written autmatically, and updated dynamically as new clients use DHCP- a semaphore file. It usually resides in the same directory as the HOSTS file.
I have always used HOSTS in static IP Windoze networking, but to my knowledge WinCE can't use this method, and I'm not sure how to define membership in a Workgroup in CE either.
The speed and stability of the Compaq card, also in the second laptop, is becoming so bad that I suspect an electronic malfunction. With a healthy card I see no reason why things should not work on the CE with DHCP as it does on the laptop and PPC.
And yes, Wingate is horribly user unfriendly
Hopefully I'll have some better news later. In the meanwhile, thanks for your generous help!
dagfinn