From an NTLK post by Simon Stapelton:

Here's my setup, which uses a direct tcp airport connection, rather than appletalk, and seems to work rather well.

Powerbook
The powerbook is set up to provide a computer-computer network.
Powerbook's IP on airport is 192.168.1.3,
subnet mask 255.255.255.0,
router 192.168.1.3 (machine routes ip using brickwall).
Appletalk is off on airport.
'by default join' is set to automatic.

Newton
Newt has Paul's TCP/IP dock module installed.
Worksite wavelan setup in infrastructure mode, no WEP, no roaming, no power management.
Worksite internet setup uses manual configuration using the wavelan card, subnet 255.255.255.0, ip 192.168.1.64, gateway 192.168.1.3, dns and domain as per my ISP.

When I insert the card in the newt, I uncheck 'use for appletalk'

Dock setup as follows: manual settings, connect to 192.168.1.3 port 3679. I could probably zeroconf here, but I've not been able to find the magic incantation to make that work.

It's rare that the connection times out.