Connecting iPod to Internet via MBP Airport

My friend just gave me her old iPod Touch 1st Generation (Yay). I connected it to my MacBook Pro via iTunes so can see all the icons etc but I'm not able to connect to the internet. I have Airport on my MBP and am presently connected to the internet, but can't figure out the iPod Internet connection.
I went to System Preferences > Sharing > Internet but still haven't been successful. Can anyone please help me or suggest a site that simply explains how to accomplish this?
Thank you very much for your consideration.

 

I have only WiFi ~ no ethernet (I don't think). My friend was able to connect this iPod to internet via her Airport. When she bought her new equipment, she had the Mac Store clean (remove everything from) this iPod.
I can't figure out to get an internet connection via my WiFi with Airport so when I click Safari, it says, "You are not connected to the Internet."
I've spent hours researching how to make this work . . . Does it ever get easy? or easier? Please, someone, have mercy and help me. Or can you suggest a website that can give me instructions? http://cdn.macrumors.com/vb/images/smilies/blackapple.gif
Thank you.

 

Network connections are not being shown. I've tried everything I know ~ . My WiFi provider said possibly my security was too high for a 1st generation iPod.

I'm thinking I'll give it back to my "FRIEND" . . . and I was so excited.... darn

 

Additional Info

My iPod is able to access wifi networks elsewhere so the iPod is doing its job. However, something was changed on my MacBook Pro that doesn't allow other Macs to access the internet here. They use to be able to. I think something may have been changed in security or airport or sharing or something that restricts the wifi to only my Mac... does that make sense? Does anyone know what I might try changing (or changing back) to allow my iPod and my friend's laptop with airport to access the internet at my house?

I'm sorry to have describe my internet service this way but here goes. . . I have airport express and access the internet via wifi. I think it goes through a small router to the outside of my house where there is a small antenna (?) on a light pole pointing toward a hotspot that belongs to my provider. Whew ~ the learning curve is steep.

Thanks for any advice or suggestions you might share.