Well i sold my friend my old pc with lfs on it and I want to start a LAN connection so we can both play, He's using my name from when i had the game on that computer. How can this be done? Can we start a local Connection and still connect at the same time?

Yep, usernames aren't important in LAN racing. Just start a LAN server then get him to connect to your IP. It should work fine, I have two PCs here and I can get two cars on the track, both in demo mode and S2.

Note that unless that PC you sold your friend is either still in your house, or you locked it to demo, you will be in breach of the license agreement.

If you're having problems make sure you can at least ping one another on the network to make sure it is working, but also note many popular firewalls like to block echo replies for some reason.

There's a thingy called HAMACHI,which simulates LAN connection on internet conenction,IT'S NOT AN LFS CRACKER/HACKER program it's a connection simulator!!!TRY THIS

You might try Hamachi but LFS will not work with it unless it is in DEMO mode.