No, a Mac running the LocalTalk bridge software is "dumb" - it just shuffles packets back and forth without modifying them: it doesn't know how to encapsulate IP in them, hence the name "bridge". As Gil mentioned, there are other software products that can do this. The old "Apple Internet Router" software was one I used back in the day. A Mac IIsi or IIcx with an ethernet card and AIR software made a pretty good router, but software solutions are never as reliable or fuss free as a hardware router.
There were a number of hardware AppleTalk routers in the day. I use an "EtherRoute TCP" made by a company called Compatible Systems. It has 2 x LocalTalk port and a single 10Mb ethernet port. There were a number of similar devices. The "Webster MultiGate" was popular with schools, since it had 4 (some models more?) LocalTalk ports. By breaking a classroom of 20 or so Mac Pluses or Classics down into 4 smaller LocalTalk LANs, it was possible to dramatically improve network performance. Cisco had some support for MacIP through an optional (extra $$$) feature set on their routers, but I'm not sure if they did LocalTalk support as well.
Windows XP has support for the AppleTalk protocol and can print to an AppleTalk printer. It doesn't know how to share files (either as a client or a server).