modem one computer to another across town for file transfers

absolutely

typically these days the simplest way to do this is to attach the files to email, but if you run a file transfer protocol (ftp) server at one end and contact it from the other that is probably slightly faster (just more complex for a novice to set up.)
 
Youshould have a program called Hyperterm if you're running windows. Read through the help menu for details on a direct connection via phone lines.

Basically, one person has to run hyperterm in host mode and the other in terminal mode. The one running terminal mode calls the one running host mode.

Other programs like 3com's Rapidcomm will do the same thing.
 
Win 2K and XP (arrrrgh no) have VPN Virtual private Networking which can tunnel thru the Internet to a certain location.
All you need is the IP addresses of each PC.

Far easier to install ICQ on each machine, create the accounts if you dont have them..and File Transfer the stuff across.
Does it at a reasonable speed too with no limits on file size.
 
If you have yahoo messenger installed just place whatever files you want to transfer into your shared directory. Then allow that person access to it. Then thay can pull them directly from your pc.
 
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