Windows could not set up ad hoc network

I have used this feature on my computer before about 6 months ago.  About 2 months ago I had to reinstall the windows 7 operating system because of some trouble i was having with software and my cd driver.  After using the dell windows 7 disc i have been having all sorts of trouble.  Drivers have not been installed and ive called dell on multiple occasions getting help with getting drivers reinstalled.  I do not know if this information will help you to help me, but i thought i would provide some background.  Tonight i tried to set up an ad hoc network so i could use my computer as a wifi hotspot and connect my ipod touch to it.  When i went to create it, i get to the screen where you type in the name of the network, select the protection and password etc.  I do all of that, and then hit next.  The next dialog box that pops up says "windows could not set up jon" (jon is the name i'm using for the network).  I do not know what the problem is, however i contacted dell hardware support, they said it was a software problem and i had to buy a software warrenty for something like $250 and then i could talk to software experts and they would fix it.  I told them i could not do that and asked how it was a software problem and the person just said that it was too advanced for the hardware support team and the software team would have to reconfigure the whole network.....whatever that means.  So any help would be greatly appreciated!

Thanks,

Jon