well, i'm not sure about FS2, but in FS1 go to OPTIONS --> MULTI... in the 'multi' menu, usually "Parallax Online" button is selected. deselect it.
now above that, make sure "broadcast locally" is on (if you're going to be playing on a network... if you're not, then leave it off).
now in the "IP ADDRESSES" list, add your friend's IP address, and have your friend add your IP address to HIS list.
then go as if you're going to play a regular game. when you click "play a multiplayer game" or whatever, instead of going through PXO, it takes you to the 'game' screen, where you see what games are being played, etc. as soon as one of you makes a game, the other person will see it and vice-versa.

EDIT:
in case you do'nt know how to find your IP address, on a windows operating system go to:
START --> RUN --> (type "COMMAND") --> type (in the dos prompt) "IPCONFIG"
and it tells you your IP address...
