Ok buddy,
If you are using Windows, here’s what you gotta do:
First, you should have a Cable or DSL sonnection to the internet… Using a dail-up service will make this more difficult than it needs to be.
If you have a cable or DSL connection, go to http://www.dslwebserver.com
Read everything on that site…especially tips for security. But, for starters, we’re going to read “The Guide” to learn how to setup the server. Now sip some tea, that’s alot of reading!
Now we install our server software, the website talks about installing the Apache Server on its own, but its better for us to go to http://www.firepages.com.au/ to get the latest PHPdev download. It installs and configures your server for you. If you want to do all of this manually, you can go here http://www.flashkit.com/tutorials/Backend/Installi-Jeffrey_-776/index.php
You decide 
Now lets leave DSLwebserver (we’ll be back) and go to http://www.angelfire.lycos.com/ to setup a temporary webpage for the next step, registering a domain IP Address.
After you do that. Drink some more tea and chew some kola nuts. Take a break; Tell your folks you love them; relax.
Now refer back to www.dslwebserver.com to configure your WAN IP address. That’s how your friend will reach you on the internet. Once you discover your WAN IP Address, write it down and go to either:
www.no-ip.com
or
http://www.tk/
to register for a domain name or IP re-director. The DSLwebserver site should have options listed too.
!!!STOP!!!
Set-up all of your security options NOW. Do not start the server until you are satisfied that your box (CPU) is secure.
When you are finished, start the server and launch your page and test, test, test. Try to break yor server using the browser. Do anything imaginable from the browser.
Is all stable? Good. Now you can tell your friend and let the games begin.
Also you may want to look at the Kaillera project for LAN gaming. Study how the emulators on the site work. http://www.kaillera.com/
Download and study the Kaillera client SDK v0.9 (32kb).
If you need more info, PM me. That goes for anybody.