We are up and running. Played for an hour with my daughter and it worked great. My son joins in tomorrow. Thanks you Monoxide for the great step by step, thank you DZCreeper for the .bat file example.
Thank you for all your help everyone.
Happy Crafting!
I GOT IT!!! YEA FOR ME! 
One more question: When launching Minecraft with the server commands "java -Xmx1024M -Xms1024M -jar minecraft_server.jar" to use more memory, how do I do that. I tried a .bat file with no luck.
Am I supposed to be using MincraftForge-SRC or MincraftForge-Universal?
OK, got close, I think. When dragging the Forge files into the Mincraft_Server.jar I receive this error. I don't understand why. Any help?
! Cannot rename __rzi_0.098 to C:\Data\Industrial Craft 1\minecraft_server.jar
The process cannot access the file because it is being used by another process.
Also, The file still runs the server but does not create a Mods folder. Does it not save the changes if there is an error?
Minecraft was not open...
Thank you Monoxide, I will give that a run through tonight and see if I can get it going. Thank you for the helpful post! 
Greetings, First time poster here...
I have a Windows 2008 R2 server at home that I run Minecraft Server on for me and the kids and some friends to play on. I have been trying to find a good clear set of introductions for building it into a IC2 server. This is only for home use on our LAN and does not (and will not) be a public server. I am on Satellite service for internet and have lousy ping and bandwidth. Any help would be great. 
Thanks ,
TillyDeHun
