I recently obtained a NetGear Router together with a ADSL line, I have two PC's PC1 and PC2, I want PC1 to have complete control over PC2, eg. serve as a Firewall for PC2. I should also be able to block PC2 from accessing Certain Websites. PC1 runs Windows XP. PC2 also Windows XP. Is there a way I can accomplish this? And if so how?
The Netgear Router itself is a much better firewall than your PC.
Also, depending on the model, it might also do Access Policy. Logon to it according to the instructions you received with it, and search for such options.
Otherwise, if you control PC2, just install some parental control software on it, for example K9 Web Protection.