adsl-modem installation

[m.w.chang]

If I want to know the detail on how rp-pppoe find the adsl-modem over 
the ethernet, what articles should I read? It's less a linux isusses, 
but more on the networking basics. I am stil puzzled by these 2 setups:

option 1: (adsl-modem)--(nic)--(PC)
option 2: (adsl-modem)--(hub)--(nic)--(PC)

I am using option 1 but option 2 is possible and without problems.

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