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Routing without a router - using a hub

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http://forums.fedoraforum.org – So I have a Actiontec C1000 (192.168.0.1) and a 32 port hub (the price was right...). All of my systems (5) have "Default Gateway" of 192.168.0.1 - but that says for machine A to talk to machine B the packets go: A->hub->C1000->hub->B instead of A->hub->B. Shouldn't the command route say if the destination is 192.168.0.x then use self and if the destination is out in the cloud then use 192.168.0.1. Or otherwise how would you configure route using only a hub and no modem/router? I hope I've explained my question right. Thanks (HowTos)