network help!

hey all
i am trying to make a wireless network at home between the family windows laptop and my mac. as far as i know, to create a network i go to the airport menu in the menu bar and click on 'create new network'. but when ever i do that my mac cuts out my wireless internet and then says that it cant make a network. this is a pain in the bum. all i want to do is to be able to swap files wirelessly over the network, is that so hard?
please help...

 

i am using a netgear router, an old one at that.