OS X :: Direct Ethernet Connection Between Macbook And Imac Won't Work

I have an ethernet cable. i have an alu macbook. i have an iMac. i need to transfer files between the two. tried connecting the ethernet cables. on the macbook it says "ethernet cable not plugged in"

on the iMac it says "ethernet cable not plugged in".

i know the ethernet cable works because i brought my macbook up to my router and used the ethernet cable to connect to the internet. it is Cat5 or whatever. i've tried everything static IP addresses. restarting. replugging. over and over and over. no luck. the macs just pretend there is no ethernet cable plugged in. tried DHCP. tried manually. but it works when i connect my macbook to my modem.

i've tried everything. i've googled, i've mroogled. nothing works. i spend two hours trying to work this out myself before coming here. every single webpage online just says "oh just turn on file sharing LOL then it works" not for me it doesn't. i've tried that. i've tried it over and over and over again. it doesn't work for me. still won't recognize.

i'd use wireless connection to transfer but that'd take like 20+ hours to send 60GB+ of data. too long (iMac is not at my house) are ethernet cables just fail? this is a BRAND NEW 20 inch imac and a aluminum macbook from 2008.