Having trouble setting up home network for home sharing

Hi there, I'm new the idea of home sharing. What i want to do is watch the movies that i have on my iMac on my iPad. So sort of like wireless streaming.
I see that Home sharing on iTunes allows you to view videos stored on your iMac on another device like the iPad etc.
I've already setup Home sharing accounts and looged in on iTunes on both my iMac and iPad.
The problem is being on the same Wi-Fi network. I don't understand what this means.
I regualrly use Internet sharing to share my Macs internet connection with my iPad over WiFi.
But I'm not sure what setting I should use for home sharing to work to watch videos from iMac on iPad
On my iMac under Sharing there's a whole bunch of options DVD or CD sharing, File Sharing, Printer Sharing etc.
The only box i have checked is Internet Sharing..
What to i have to do to get the iMac and iPad sharing video over WiFi through home sharing??

In your configuration you have inadvertently created a different subnet for the wireless iMac G5. To remedy this, configure the AirPort Express so that the option to distribute IP addresses is DISABLED.

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