Windows 7 Starter edition had the Internet Connection Sharing utility removed from the menus, however, I'm told it is still there. Just go to the Start menu and type "adhoc" to get to it.
(citing gizmodo on that one, I haven't tried it myself due to a lack of convenient Starter edition PCs here...)
With ICS and a cheap switch, you should be able to get this all wired up. Connect ethernet ports on both laptops to the switch, then get the wifi on the netbook connected. Once connected, run "adhoc" and get ICS configured to share that wifi connection to the ethernet clients.
See Using ICS for some more details.