Ad-hoc Network - Cannot connect to internet

Hey guys,

My sister is currently trying to get an ad-hoc network up and running. There's no wifi in her area, so she has a laptop hooked up to an ethernet connection and wanted to set up an ad-hoc network for her IPOD touch.

I've guided her to set up the ad-hoc network, which the ipod can both see and join without problem. She can access the host computer through the network. However, she cannot access the internet on the IPOD, and the laptop cannot ping the ipod.

ICS is enabled on the host, but it's still not working. I'm not too familiar with ad-hoc networks past what I've managed to do, so I was hoping somebody could help. The laptop is running XP with SP2.

Here's the ipconfig specs from the laptop (forgive the formatting, posted through an IM chat):

Windows IP Configuration

Host Name . . . . . . . . . . . . : NETWORK
Primary Dns Suffix . . . . . . . :
Node Type . . . . . . . . . . . . : Unknown
IP Routing Enabled. . . . . . . . : Yes
WINS Proxy Enabled. . . . . . . . : No


Ethernet adapter Local Area Connection:

Connection-specific DNS Suffix . : (xxx.xx.xx)
Description . . . . . . . . . . . : Intel PRO/100 VE Network Connection
Physical Address. . . . . . . . . : 00-A0-D1-5F-A6-A3
Dhcp Enabled. . . . . . . . . . . : Yes
Autoconfiguration Enabled . . . . : Yes

IP Address. . . . . . . . . . . . : 144.32.5.221
Subnet Mask . . . . . . . . . . . : 255.255.255.0
Default Gateway . . . . . . . . . : 144.32.5.1
DHCP Server . . . . . . . . . . . : 144.32.129.66
DNS Servers . . . . . . . . . . . : 144.32.128.228
144.32.129.66
Lease Obtained. . . . . . . . . . : July 27, 20
Lease Expires . . . . . . . . . . : July 27, 2008 3:50:01


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She's informed me that the IPOD currently has an IP of 192.168.0.136, subnet mask of 255.255.255.0, and displays both "Router IP" (note: no router on the network) and DNS as 192.168.0.1.

Any help would be appreciated.

 

Interesting update:
We played around with manually setting IP settings (that wireless card's IP is indeed 192.168.0.1) on the Ipod. She just gave me this update:
"So okay. when I change IP it works.. but only for a few seconds.
like... if I got quickly to my email and refresh (to dload new msgs) it does so. But then it stops again. and despite showing connection to the network, safari (the only browser) indicates no net connection."

I no longer think it's an IP issue. Even so, I'm pretty much stumped now.