Create wifi without router plzzzzzzzzzzzzzzzzzzzzzzzzzzz help?

i have a wired internet at my place and an ipod with supports wifi but no wifi router
so i learned this thing about creating wifi network(ad-hoc) so that i can get internet connectivity on my ipod.
so through wireless network connections i created an ad hoc network as was written in microsoft websites and in many youtube videos. first time it was a success. computer showed wireless lan connected speed 5mbps ... and it was recognized in my ipod as well and got connected
but since i hadnt allowed my lan to share internet with my wireless connection i didnt get any net in my ipod but there definitley was a connection coz i was able to copy images from my ipod to my pc.
now when i tried to create a new adhoc network like this with my lan sharing the internet i make it properly( i think so, as i follow all the steps) and the wireless connection icon in system tray, when i open it, it recognizes the network created and in details says that you are connected but there is the system tray there is a small cross in front of the computer(which I guess means not connected). My ipod doesn’t sees any network now.
Its like its creating the network but not transmitting anything over wifi so others can see.
Here is a screenshot of what I am trying to say.
And I use xp.
http://img102.imageshack.us/img102/2214/ipod.png

well this is the guide i followed
Making the Wireless Home Network Connection in Windows XP Without a Router