A home network that has been logically divided into two or more networks (subnets) is an advanced network configuration. Most home networks are not configured in this manner; the physical network consists of just one logical network. This works perfectly fine for most households.

Why do I have to type the server name manually?

Even if you have an advanced network configuration in your home, the wizard still attempts to find your server. However, if you have an advanced network configuration and you name your server something other than SERVER, you must manually type the name of the server.