Internet Sharing (setting password)

Hi,
I'm currently connected to the internet via ethernet and I share my internet connection with my housemate's wireless laptop via my PowerBook's airport. My question is how do i set a password so that only my hsmate is able to connect to my PowerBook instead of the whole apartment?
Thanks.

So now i have a problem getting it actually to work.
I plug the ethernet cord to my powerbook. Chose to share the ethernet connection through Airport.
My HP computer finds the network and can connect. It can also ping my powerbook (192.168.0.100) my router (192.168.0.1) and sites on the internet (www.kth.se) but i can't get any application (explorer, skype, messenger) to connect to the internet. I can also ping 10.0.2.1
I note that running a ipconfig on the pc returns an IP-address of 10.0.2.3 and a standard gateway of 10.0.2.1.
If I use the network utility on my mac I see that the IP-address is 10.0.2.1 for the "en1" (airport)
Why does my mac invent its own IP-address? If i try to set it to 192.168.0.2 I cannot see these changes taking place in the network utility., it's still 10.0.2.1
Any advice how to share my connection?

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    I plug the ethernet cord to my powerbook. Chose to share the ethernet connection through Airport.
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