A system and method for use with local area networks (LANs) automatically configures a new device on a LAN by secure encrypted transmission of setup parameters. A remote control (RC) with an infrared (IR) transmitter contains a stored setup command and a security number that is used only once (a "nonce"). Setup of a new device is initiated by pressing a "setup" button on the RC which generates the security number and transmits it and the setup command to the new device via IR. The new device receives the setup command and security number and queries the network for the setup parameters. The RC also transmits the security number via IR to a network member device that contains the setup parameters. The network member uses the security number as an encryption key to encrypt the setup parameters and transmit them over the network. The new device uses the security number as the decryption key to decrypt the transmitted setup parameters.