DCE 

vs  DTE
DCE (Data Communications Equipment) and DTE (Data Terminal Equipment) are
descriptions of the role an Ethernet interface (also other Interfaces but we will concentrate on
Ethernet here) plays in 2-way communication.  DCE is typically the upstream device
(network end), and DTE the downstream device (user end).  DTE is an end station, while
DCE is a server, router, or hub.  But this can vary !!!

These terms are very important, because they dictate the send/receive pinouts on both
devices, which will then let you know whether to use a straight-thru cable, or a crossover
cable.

Straight-Thru vs Crossover Cables

Standard Ethernet cables are "straight-thru", and use two pairs of wires (one for transmit and
one for receive)  .  .  .  Pair 1-2 and Pair 3-6.  The other 4 wires are available but are typically
not used.  The reason you need 2 wires for each data transmission, is because a complete
electrical circuit is required to pass electricity.  This is true for all electrical devices, such as
lights, Television, Toaster, etc - a minimum of 2 wires are needed.

For the straight-thru, Pin 1 on one end connects to Pin 1 on the far end, Pin2 to Pin2  .  .  . 
Pin8 to Pin8.  There are only 4 pins that are used (2 pairs), since you only need two wires for
transmit, and two for receive. The two pairs used are 1-2, and 3-6.  With a crossover cable,
the wires connected to Pins 1-2 on one end are "crossed over" and connected to Pins 3-6 on
the far end.  The same is done with the wires connected to Pins 3-6 - they are crossed over
and connected to Pins 1-2 on the far end.
Cardinal Rule
 DTE-DCE  or  DCE-DTE connections use Standard Ethernet Cable (straight-thru)
 DTE-DTE  or  DCE-DCE connections use crossover Ethernet Cable (send/receive
"cross over")

DCE/DTE refer to interfaces - not the actual device.  A device can have both DCE and DTE
ports.  However, in general:

 PC LAN cards (NIC - Network Interface Card) are DTE

 Hub LAN ports are DCE
 Hub Uplink Ports are DTE - it is a shared port with the last LAN port, but has the
pinouts crossed
 Cable Modem LAN port is DCE
 Router LAN ports are DCE
 Home Router WAN Ethernet ports are DTE

         NOTE:  Internet routers have serial WAN ports, so the descriptors do not apply to them

The Hub's Uplink Port

The uplink port takes the leads from the LAN port next to it and reverses the two pairs of
wires (transmit and receive), making it a DTE port. The last LAN port and the Uplink port
are shared.  The LAN ports are DCE and are used to connect to DTE wired Ethernet
interfaces, such as workstations.  The uplink port is used to talk to other DCE devices such as
hubs, routers, or switches - without having to use a crossover cable. 

When connecting two hubs, only use the uplink port on one of them.  If you do connect two
uplink ports together, as with any DTE-to-DTE connection, you will need a crossover cable. 
Since the Uplink is nothing more than a reversal of the adjacent LAN port - you can hook any
hubs, switches, or routers together whether or not uplink ports are present. Simply use one of
the LAN ports instead, and connect them to another hub, or a router or switch, using a
crossover cable.  

Many hubs have 4 or 8 LAN ports and 1 Uplink port.  If you do not use the Uplink port, then
you can use all LAN ports.  But if you use the Uplink port . . . you cannot use the shared port
that sits next to it.  It's taken.  The adjacent port is usually Port 4 with a 4-port hub, or Port 8
with an 8-port hub).