It can be done with Dial Up.
http://www.lowendmac.com/x-basics/03/0407.htmlI'm on the Pismo and MDD at the same time.
Posting this from the Pismo.
Took a bit of messing around,
Made an Ethernet connection. Turned on Internet Sharing on the MDD Jaguar.
Eventually used the Pismo/Panther Assistant and it worked.