Tethering a phone to a laptop, then broadcasting the connection to other devices?

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Caperi

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Here is what I'm trying to do...

1) Connect my HTC Evo 4G to my Vista laptop via a USB Tethering app (PdaNet in this case)*
2) Set up an adhoc network and enable Internet Connection Sharing
3) Connect to that adhoc network with other devices (such as my iPod Touch) and use the internet on them

*PdaNet comes up on my laptop as a dial-up connection

Why? Because I don't want to pay $30/month for the Evo's Wifi hotspot nor do I want to root it. The problem with what I did was that the internet connection never got to my iPod Touch - it behaved as a regular adhoc network with no internet sharing. Any ideas why that didn't work and/or any other methods to make this possible?
 
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