ICS doesn't see my LAN connection

I have a Win98 PC and WinXP laptop I'm trying to connect. PC has cable modem,
but when I run ICS it only sees "Dial-Up Networking" and "Microsoft TV/Video
Connection" adapters and not my Ethernet card. It doesn't see how I'm
connected to my cable modem (which is working perfectly).

Also, I have a wireless router and my laptop keeps telling me that it's
connected to the internet, but I can't open any web pages. Friends tell me
that it should be able to do this without being networked to my PC and to
work on that first before trying to fix network issues. I'm clueless about
all this.