This tutorial gives a start to finish explanation of how to make an Internet Wi-Fi router with Windows Vista. With real time computer screen video and narrative, it is easy to follow along at home.
First, determine what network connections are available and in use on your computer. Once that's determined, the next step is making an ad hoc connection and naming this network.
Next, plug in an Ethernet cable to set up the wireless and return to find your LAN or high speed Internet connections under your network connections. For this to work, it requires allowing sharing of the connection.
The ipod touch lists the Wi-Fi connection. After it is chosen, reload Safari with this connection and it comes up very quickly.