OK I've found the soloution to this!
I'm posting so that anybody who ever comes across this again will be able to use what I have found out. For some reason if you are connected to a NETGEAR (in my case)router, Age of Empires (i've tried 1 & 2) uses the internet (if available) for all multiplayer games, meaning if you are making a LAN game the stupid internetwill getting involved.
What I did was, went onto my router and deleted the DNS address (you can change anything, as long as it will stop the router from connecting you to the net). Started up AoE and LAN works! As soon as I'm done I restore it back to previous settings so internet works. So it's just a network - not a network connected to the net. Annoying but SORTED.
Yay!!!!!!!!!!!!!!!
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