Does Internet Connection Sharing work on the laptop's wireless interface (sorry for not reading the whole thread - I'm in a bit of a rush this morning). If you can do ICS on that interface, that should be all that's needed, and it'll start running a DHCP server on the other interface (the one connecting to the desktop) and the desktop should get an IP address and be able to connect to the internet.
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Eat antimatter, Posleen-boy!
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