So my brother and I want to play Might and Magic 3 together, without using the hot seat game play. But most of the LAN solutions involve using Hamatchi or other things like that. Is there a way to make a LAN server? We are both running windows 8 and the game works without flaws. We just can't seem to get TCI/IP to work.

It should work, maybe there are problems with the firewall or something similar. I have played with TCP/IP connecto up to 5 players. Hamachi is not needed if you are connected to the same LAN. Check your connections, if you have hamachi instaled maybe it messed your network connection. Open a terminal al type ipconfig /all and post here what you get. Also which is the specific problem? Do you see each other but are unable to conect or you can't see the hosted game?

Of course it's possible to play a TCP/IP game within a LAN without Hamachi etc. as DracoMagister said.
One of you creates a hosted multiplayer game within HOMM3 and the other one joins.
You need the same HOMM3 version and your LAN should use TCP4 not TCP6.
If you don't see each other try the following:
- Disable third party anti-virus/firewall programs

- Turn off the Windows firewall while playing, but turn it on again when you don't
On Win7 (Win 8 should be similar):
Go to the Control Panel => Windows Firewall
On the left side under Control Panel Home click: "Turn Windows Firewall On or Off"
Check "Turn off (Not recommended)" for private and/or public (whichever type of network you're using)

The harder way would be adding specific exceptions for the game's executable (e.g. for port 2300 TCP/UDP) and also for DirectPlay (dplaysvr.exe on port 2234 UDP)

Use Gameranger... This works perfectly for me and my friends :)

I just bought this two days ago and I am finally able to make LAN play working for the first time.

You need to open the following ports in BOTH router and firewall.
(Router configuration not required if you are playing on LAN only)

2300 to 2400 TCP & UDP
28800 to 29100 TCP & UDP
47624 TCP & UDP

More detailed information can be found here:

heroescommunity.com/viewthread.php3?FID=2&TID=12141

Hope this helps! :)