Computer to computer connection with ethernet and no router?

I'd like to connect my Raspberry Pi to my laptop (windows 8.1) directly via ethernet, without going through a router. I thought I could just set static IPs on both my laptop and the Pi, but they're not talking to each other. I shouldn't need to use a crossover cable, as both devices should be auto-sensing. The goal is to have a totally mobile platform where I can program on the pi from my laptop, anywhere, with just one connection to the Pi (plus USB power).

Laptop settings:
IP Address: 192.168.1.2
Subnet: 255.255.255.0
Gateway: 192.168.1.1
DNS (not that it matters): 8.8.8.8


Pi settings (in /etc/network/interfaces):
iface lo inet loopback
iface eth0 inet static
address 192.168.1.106
netmask 255.255.255.0
network 192.168.1.1
broadcast 192.168.1.255
gateway 192.168.1.1

Can't you use USB data to program the Pi?

I believe you need a USB to Serial TTL cable to do that (which I don't have).

i believe you need a crossover cable.

You could try creating a DHCP server on your laptop with THIS.

Once you start it, connect the ethernet cable, and the program will indicate that a new device was issued a new DHCP address. Use Putty or some terminal to SSH with the indicated address.

Another way is to Enable internet connection sharing on the laptop network port and that will do the same thing, but without a gui to show you client information. Scanning your network with a port scanner, like NETSCAN would show you this.