Let me get this straight, correct me if I'm wrong :
You have a usb modem, with no RJ-45 connector.
If so, if you connect your modem into one system (with the usb port), that system (which will need a network card to connect to the switch ; this computer will be the gateway) into the switch, and the other computer (which will also need a network card) into the switch also, it should work.
If you have Win XP or Win 2000, you should be able to share the connection with the built-in program that these OS have, but you have to config the gateway and the other computer to share the connection or else it will not work.
Keep in mind both computers will have an IP, so both computers will be seen from the net. Maybe your ISP will not want to give you 2 IP, you will have make sure you can.
File sharing should not be an issue as the computers will see eachother because of the switch, considering you have configured windows for file sharing.
The gateway must also be turned on at all time to share the connection.
If you have Win 98 or ME, I don't know if they can do it by themselves or if you'll need another program to make it work.
If you only want 1 IP, you can plug your modem into your computer, and the computer into the other one with an RJ-45 crossover cable, in that case, you will not need the lan switch. You can use the switch anyway, between both computers, in that case, you will not need a crossover cable, but you will need more cables, the advantage is that you will have the possibility to plug several computers into the switch.
For those, you will either need to make the gateway a DHCP, which will provide the other computer with an IP, or you can manually give the other computer an IP.
Your gateway will be seen from the net, but not the other computer.
In any case, it would be good to have any sort of firewall program like zonealarm.
So you must config windows to share the internet connection, and config it to share files.