Can't set up my airport card to share my internet connection with notebook

I have an iMac with an airport card -- I have a visitor with a notebook and I cannot set up a way to share the ethernet cable connection through my computer and airport card. No matter what I do it the Airport will always show "AirPort 5 has a self-assigned IP address and may not be able to connect to the Internet". I don't understand why it has a self-assigned IP -- I thought by using the internet sharing set-up that it simply duplicated a sharing of the modem through the built-in ethernet and using the same IP address. What am I doing wrong or is it just not possible to do it due to what my airport card allows? I am doing everything by the letter according to the instructions iMac G5 although I upgraded to Leopard operating system. Any advice? i do have an airport express but I can't understand why the airport card simply does not share my IP address.

The Airport Utility will only see (scan) the router if your PC is connected to it.
You may do the following.
1) Hard reset using the reset button on the router while plugged in. Keep pressed the button for 5 seconds to reset.
2) Connect to "Apple ..." network as shown in "View available wireless networks". Don't worry if you lose you connection to your existing matter. Your PC has already been setup to connect to your existing network and it takes only a click to connect to it. After you're done with Airport Express, your PC will automatically connect.
3) If still not successful, try opening network connection properties. Go to control panel, right click Network connections and select properties. Go to Wireless tab on the top and check if apple network is listed in your preferred networks. If not, try steps 1 and 2 until you find the network here. If it is listed here, open its properties and change encryption to "Disabled".
4) At this point, you should see it in Airport Utility.

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