Summary: If your computer has Firewire, you'll see a 1394 network adapter in your configuration. It can be used for networking, but I don't recommend it.
I'm running a Gateway GT 4016 computer running XP service pack 2, from the start button I can push "network connections" and I see 2 network connections. I have one labeled Nile which I run my 2 machine home network on, the other is labeled 1394 network adapter. The one labeled Nile, runs at 100 Mbps, the one labeled 1394, runs that 400 Mbps. The Nile connection seems to be run by nVidia nforce drivers, and the 1394 connection seems to be run by Microsoft with VIA OHCI Compliant IEEE 1394 Host Controller drivers. Why do I have a two connectors and the slowest one seems to be the only one that I can run my home network on. Is it possible to use the other, faster network?
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I have the same connection, and no, I'm not aware of an easy way to use it for networking. It's possible, but in practice, that's not why it's there at all.
You might know 1394 by another name: Firewire.
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IEEE 1394 is the industry standard for a an external data connection also known as "Firewire" (trademarked by Apple), i.Link and a few other marketing monikers.
They all boil down to the same thing: a high speed external interface for data transfer.
Since you're seeing 1394 in your network connections, chances are you have one or more 1394 ports on your machine. They're easy to identify by their distinctively shaped socket. Here's a picture of the side of my MacBook Pro that shows the three common interfaces side-by-side:

Naturally the placement on your own machine might be quite different.
USB and 1394 are sometimes considered "rival" interfaces, since they do many of the same things. 1394 has a slight advantage in popularity for streaming media - if your video camera has a digital interface, chances are it's 1394. USB has an advantage for random peripherals like mice, keyboards and the ever popular USB FlashDrive. And both 1394 and USB are often used for external hard disk drives.
So why does 1394 show up as a networking interface?
It is possible to use a 1394 interface for limited networking. You can, for example, use 1394 to create machine-to-machine network. Naturally, both machines must have the 1394 hardware interface and the appropriate 1394 cable must be used to connect them. Much like networking with a single ethernet cable, I'd expect additional protocols might be required, or additional configuration steps needed in the TCP/IP configuration (since IP addresses would have to be assigned manually.)
But, in all honesty, that's not what 1394 was really designed for. While it might be possible, I wouldn't recommend it, as you won't find a lot of how-to information.
And you certainly cannot use your IEEE 1394 interface to connect to an existing ethernet based network. At least, not without some kind of adapter hardware, and I'm not sure that hardware even exists.
And lastly, rumor has it that 1394 networking ability has been removed from Windows Vista.
My recommendation is to use the interfaces for what they're best at and most commonly used for: USB for peripherals, 1394 for video cameras and perhaps external hard drives, and ethernet for networking. You'll get the best results, and the best support for your efforts, by following those common paths.
Related:
Ask Leo! - How can I tell if I have USB 2.0?
Ask Leo! - Why won't my external drives shut down automatically?
Wikipedia - Ethernet
Wikipedia - Firewire / IEEE 1394
Wikipedia - USB
Article C2939 - February 20, 2007
I differ. On a default XP installation, conecting two computers with Firewire(1394) is as simple as pluging the cable on both. The resulting connection is several times faster than a Ethernet conection (4x at least) which makes it ideal to transfer lots of information.
Posted by: pablo at July 9, 2007 8:29 PMI tried as a last resort the last time I upgraded laptops and was ashamed that I hadn't paid any attention to it before.
MY problem is click on tools then internet options a small box opens but just for a blink of an eye it will not open for my settings, I then saw in connections 1349 connection I'm sure it wasn't there before could it have gotten there when I downloaded Live TV.could this have altered my settings Thanking you on reply.
Yours Sincerely T.Ritchie
Posted by: terry ritchie at July 27, 2007 1:05 PMI have a sony Viao vgc-44rb desk top running window xp svcs pk2. I am a computer idiot so I need an answer a 3 year old could understand.My 1394 shows connected @ 400 but I can't get online.It pops up that my tcp/ip are not configured for this device and the driver is missing for it.Sony has lots of drivers on it's site but I have not a clue what I am looking for.Help!
Posted by: Michele Pond at March 14, 2008 6:43 PMI have a newly built computer. The LAN was there and it was connected to the internet. A week or so ago I had to change the power supply and the LAN has disappeared but the 1394 connecrion is still there. How can I recover the LAN in my computer? I am running windows XP
Posted by: Chris Miller at March 19, 2008 2:21 PMChriss Miller - its most likely the current power supply is not sending enough power to your motherboard. Try disconnecting a CDrom drive and see if that helps. If not get a higher voltage power supply.
Posted by: Mohammed at March 22, 2008 3:20 AMi have lan working in my site with help switch & also broadband connection is also attached one of PC in LAN system i have to give broadband connection only one more PC which have 1394 net adapter in LAN how can i set it? it any 1394 net adptor cable is required for this
Posted by: Shashikant Shinde at September 19, 2008 12:37 AMBut I have give broadband connection in this mannaer? any other method for it?
Posted by: s shinde at September 19, 2008 12:41 AMYou can NW USB/USB & FW/FW, but anyone know if &/or tried to connect using USB/FW P2P? Might it perhaps be done with a prefab cable such as those typically used to connect digital cameras and external media? I am sorely tempted to fab up a couple DT carcasses & see if anything sticks or maybe smokes.
Posted by: Gerald Spickenagel at October 2, 2008 10:35 PMIt is not my comment, but I really need your help.
I want to connect 1394 adapter to my external HDD, but I don't know how to. I have tried direct connection but computer does not recognized the device.
Thank's and very appreciated for your help.
Posted by: Tommy at December 2, 2008 7:26 AMTommy.
I haveHP laptop having 1394 network adpater .i am npt able to use internet on my laptop..neither the wifi is working nor the broad band connection ..pls suggest me ..
Posted by: jpogesh at December 4, 2008 3:02 AM