There is a simpler way.
I'm guessing that PC 1 is connected to your LAN, and PC 2 is not (if you delete the switch), yes?
Simple fix, makes all your problems go away: bridge the network connections on PC 1.
Howto: http://windows.microsoft.com/en-us/wind ... ork-bridge
End result is that there's a pass-thru connection from NIC1 to NIC2 on PC1, allowing PC2 (connected thru the switch) to be on the same LAN.
Of course, this begs the question: why not simply connect the switch to the LAN, and connect both PCs to the switch? That would be simpler still....
The only reason that I can think of to not
do that is if PC1 is on a wireless connection, and there is no option to bring a wire to the location.