How to use iMac w/Airport and DSL connection as a wireless router ???

My iMac G5 (with Airport) is connected via Ethernet to a DSL modem.
I want to connect my iBook G3 (non-Airport) wirelessly through the G5 to access the internet in a small home network, (without a standalone router).
I have a USB adapter (ASUS wl-167G) and MAC OS drivers for the iBook. I seem to be getting a connection to the Airport card in the G5, but nothing to the modem with Safari or Firefox.
I need some detailed instructions on setting up the iMac to access the DSL normally AND pass through a wireless connection for the iBook.
Future plans are to buy an Airport Express for stereo and printer purposes.
If using the Express will greatly simplify what I'm trying to do here, please advise so, (and how), and I'll get one now.
Thanks
Ken

Thanks sig, but I am already set up that way. Also in sharing>internet>
Airport options: channel-automatic, firewall-off, services-on (file sharing,Etc.)
Network Status shows: Built -in -Ethernet, active and a IP address. Airport, sharing is on and using Airport and an ID #
I also tried setting Airport to channel 11 (what the USB "Dongle" is connected to).
Still no joy.
I think I may need to manually configure both Airport TCP/IP in the iMac, and the USB Adapter in the iBook but I don't know what values to enter for IP Address, Subnet Mask, and Router.
In way over my head, here. Any additional help is greatly appreciated.
Ken
20" iMac iSight G5,1.5 GHz Ram;   Mac OS X (10.4.4)   iBook 900 MHz G3 (OS X 10.3.9); iPod Photo 60Gb; LaCie 250 Gb FW HD

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