LAN Access for Wireless Clients without an Access

Ok, I have followed the instructions in the LAN Access for Wireless Clients without an Access Point article to a T but I am not getting internet access on my laptop.

My desktop is coneected to the interent through a dlink wired router. I attached a USB wireless adapter to it and configured it just like it says in the article.

I then conneced another wireless adapter to the laptop and configured it just like the article says to. Both computers show that there is a connection between the two (jojo) and the signal strength is Excellent. But when I open the web browser on the laptop there is no internet. The internet works fine on the desktop.

When I do an IPCONFIG on the laptop it gives me an IP of 169.254.66.27 and a subnet mask of 255.255.0.0 It is setup to get an ip address automatically. When I try to renew I get a message that says: "An error occurred while renewing interface Wireless Network Connection: unable to contact your DHCP server. Request has timed out."

What is going wrong here? Any help would be greatly appreciated.

You can find a few picks of my desktop set up at http://www.bitxl.com/help.htm