If you are starting a network from scratch, it's considerably less expensive to use thin ethernet, RG58 co-ax cable with BNC connectors, than old-fashioned thick ethernet, RG-5 cable with N connectors, or 10baseT, twisted pair telco-style cables with RJ-45 eight wire `phone' connectors. See Type of cable... for an introductory look at cables.
Also note that the FAQ from comp.dcom.lans.ethernet has a lot
of useful information on cables and such. Look in
dorm.rutgers.edu for the file
/pub/novell/info_and_docs/Ethernet.FAQ
Thin ethernet is the `ether of choice'. The cable is inexpensive. If you are making your own cables solid-core RG58A is $0.27/m. and stranded RG58AU is $0.45/m. Twist-on BNC connectors are < $2 ea., and other misc. pieces are similarly inexpensive. It is essential that you properly terminate each end of the cable with 50 ohm terminators, so budget $2 ea. for a pair. It's also vital that your cable have no `stubs' -- the `T' connectors must be attached directly to the ethercards. The only drawback is that if you have a big loop of machines connected together, and some bonehead breaks the loop by taking one cable off the side of his tee, the whole network goes down because it sees an infinite impedance (open circuit) instead of the required 50 ohm termination. Note that you can remove the tee piece from the card itself without killing the whole subnet, as long as you don't remove the cables from the tee itself. Of course this will disturb the machine that you pull the actual tee off of. 8-) And if you are doing a small network of two machines, you still need the tees and the 50 ohm terminators -- you can't just cable them together!
Twisted pair networks require active hubs, which start around $200, and the raw cable cost can actually be higher than thinnet. They are usually sold using the claim that you can use your existing telephone wiring, but it's a rare installation where that turns out to be the case. The claim that you can upgrade to higher speeds is also suspect, as most proposed schemes use higher-grade (read $$) cable and more sophisticated termination ($$$) than you would likely install on speculation. New gizmos are floating around which allow you to daisy-chain machines together, and the like. For example, Farallon sells EtherWave adaptors and transceivers. This device allows multiple 10baseT devices to be daisy-chained. They also sell a 3c509 clone that includes the EtherWave transceiver. The drawback is that it's more expensive and less reliable than a cheap ($100-$150) mini-hub and another ethercard. You probably should either go for the hub approach or switch over to 10base2 thinnet.
On the other hand, hubs are rapidly dropping in price, all 100Mb/sec ethernet proposals use twisted pair, and most new business installations use twisted pair. (This is probably to avoid the problem with idiots messing with the BNC's as described above.)
Also, Russ Nelson adds that `New installations should use Category 5 wiring. Anything else is a waste of your installer's time, as 100Base-whatever is going to require Cat 5.'
If you are only connecting two machines, it is possible to avoid using a hub, by swapping the Rx and Tx pairs (1-2 and 3-6).
If you hold the RJ-45 connector facing you (as if you were going to plug it into your mouth) with the lock tab on the top, then the pins are numbered 1 to 8 from left to right. The pin usage is as follows:
Pin Number Assignment
---------- ----------
1 Output Data (+)
2 Output Data (-)
3 Input Data (+)
4 Reserved for Telephone use
5 Reserved for Telephone use
6 Input Data (-)
7 Reserved for Telephone use
8 Reserved for Telephone use
Some cards, like the wd8013 can sense reversed polarity, and will adjust accordingly. Also note that 3 and 6 must be a twisted pair. If you make 3-4 a twisted pair, and 5-6 the other twisted pair, your cable may work for lengths less than a metre, but will fail miserably for longer lengths.
Note that before 10BaseT was ratified as a standard, there existed other network formats using RJ-45 connectors, and the same wiring scheme as above. Examples are SynOptics's LattisNet, and AT&T's StarLAN. In some cases, (as with early 3C503 cards) you could set jumpers to get the card to talk to hubs of different types, but in most cases cards designed for these older types of networks will not work with standard 10BaseT networks/hubs. (Note that if the cards also have an AUI port, then there is no reason as to why you can't use that, combined with an AUI to 10BaseT transceiver.)
Thick ethernet is mostly obsolete, and is usually used only to remain compatible with an existing implementation. You can stretch the rules and connect short spans of thick and thin ethernet together with a passive $3 N-to-BNC connector, and that's often the best solution to expanding an existing thicknet. A correct (but expensive) solution is to use a repeater in this case.