Is the cable modem also acting as a hub?
If so, a lot of the network protocols out there have admin overhead and it could be just that. If you have the IPX protocol enabled, it keeps the acitvity light blinking regularly, even if 'nothing' is happening.
Also, If you run a LAN at home I would strongly recommend that you use file & print sharing only with IPX and NOT on TCP/IP. Otherwise everyone and his brother can access your computer unless you run a firewall.
It's easy to switch file & print sharing over to IPX in Win98, but it can't but all that more involved in 2000/NT/XP. For Win98, all you do is go into your network settings and add the IPX protocol (it's under Microsoft in the list of protocols). It will automatically be bound to your client and to file & print sharing. Then open the TCP/IP properties, click on the bindings tab, and uncheck file & print sharing. Leave TCP/IP bound to the microsoft client (or Windows logon, whichever you use).
Of course, if you only do this on 1 machine on your network, it won't work. You gotta do this on all your machines for this to work. If you are using IPX and another machine is using TCP/IP, you won't see that computer in your network neightborhood anymore. You need to switch them all to IPX.
People who use a modem to get on the internet, should remove the IPX entry for the dialup adapter (no sense in wasting memory). Also, people who DON'T use a modem, should remove the stupid dialup adapter component it automatically installs whether you have one or not.
Needless to say, if you don't run a LAN, then TURN OFF file and print sharing! Are you asking to get hacked? Who are you sharing it to?