Ok, Ill hook it back up to my router and turn on DHCP from there. The weird thing is that iTunes can see that the 323 is sharing, but it wont access it. At least there is some form of communication going on there.
My wireless ip is 192.168.2.1, the subnet for it is 255.255.255.0. Should i manually assign the imac something like 10.10.10.2 and 255.0.0.0 for the subnet?