I've got an XP-SP3 desktop with an internal dial-up modem & one LAN wired to a Netgear WGR614v7 wireless router. My client Win7 laptop has both built-in LAN & wireless.
I've now tried so many different configurations I don't remember exactly what I had done to make it work originally tho I know it was fairly simple & straight forward.
As best as I can recall I connected the host desktop to the router with ICS enabled on my dial-up. Ran the new netwiz on the XP & rebooted when complete. Using a thumb drive I then ran the XP netwiz on my laptop, it RAN & completed with a reboot !!! Then I connected to the internet in the usual way & then I plugged in the LAN from my laptop to the router & WOW, it worked!!! I proceeded to use both pc's online for an hour or so to confirm that it was really working, no prob. The router wireless was not on & I wanted to see if I could access the internet with my iTouch also &... It wasn't broken & I should NOT have tried fixing it because I've not been able to get it back again after a couple of dozen different attempts.
Also, the Win7 laptop has not let me run the XP netwiz to completion again & I'm unable to figure out how to do what XP's wiz did, which I'm thinking must have been important.
Any suggestions or thoughts would be greatly appreciated. I know their are other hardware options available but this is all I have to work with. Also, I'm content to not have wireless, I just want to get back to what I had...
Start fresh, set everything back to default and shut off ICS. Reset the router to default. Reset the XP and Windows 7 tcp/ip stack and winsock (using command prompt in XP and an elevated command prompt in 7) and typing (hit enter key after each):
netsh winsock reset
netsh int ip reset resetlog.txt
and then reboot
Get the networks working properly before complicating things with ICS. You should not need any additional software on the XP, it is a simple manual procedure and you don't know what wizards are doing to your connections.
Get the dial-up working on the XP machine. Next get the wired from the laptop to the router working with the wireless on and test it to insure that the iTouch connects.
Once both the XP dial-up and other network are stable, then turn on ICS in the dial-up network adapter on the XP machine. An alternative to ICS is to bridge the adapters in the Win XP like THIS but for bridging ICS must be OFF.