Beaglebone Network connection help

Please some kind person point out where a newb is going wrong.

Okay so at the minute I have my BB attached to my Windows 7 64 laptop through nothing but the USB lead, no ethernet going to router etc… laptop is connected to net using wifi.

it is my understanding that I can use the laptops internet connection directly on the BB, this might be the first place I am going wrong.

so anyway I can connect on my laptop through my browser to 192.168.7.2 and get to cloud 9 etc and I can SSH in and serial in on putty.

My computer is recognising the ethernet connecting and installing the relevant NDIS driver, when it does this a network appears called “unidentified network, local area connection 3”

I have set the TCP/IP4 settings as follows,

ip address: 192.168.7.2
subnet 255.255.255.0
gateway (sometimes I leave blank and have tried 192.168.7.1/2)

Windows then usually tells me "another computer on the network has this IP address and conflicts, or it comes up and says DHCP is not enabled on this connection

on the BB I type “ifup eth0” and it says searching and does nothing and if I type

ping -c 5 google.com

it says host not found…

I have NO IDEA if I am doing any of this right I am a total newb with networks, I just wanna be able to get my BB online!!

This was explained on this mailing list within the last month... I'd suggest looking back through the archives for this issue..