If you are blowing up after a few seconds, your problem is with Blowfish.dll. The best way to fix this is to download a proper dll, for example from here:
Playing over LAN
If you want to play over LAN, you need to download and add the winsock32.dll into the game folder.
This enables communication over UDP instead of IPX.
If this still does not solve your problem to see each other in the network option, a very simple solution is to disable all network adapters, except the one you use to connect to your local network.
For me, I only left the Wi-fi enabled, disabled the others, my friend did the same, we were on the same Wi-fi network and the game worked like a charm.