I read a few networking guides but i am still confused. I started with a desktop pc with one nic and a cable modem connected to that nic. Then, i got a laptop which i wanted to network. I installed a second nic and connected it to the lapto via cross over cable. Then i enabled ics for the cable modem. I can access the web and share files with the laptop. I'm going to buy a wi-fi card for the laptop soon. I know i will need some sort of wireless access point for the desktop pc. My question is, what kind? Where do i put the acess point? Should i just hook it to the second nic card i have?

Skip the Wireless Access Point and go with a Router with built in wi-fi access point. They cost the same and a router does a lot more. It would allow you to get rid of the ICS software. You want something like the Linksys WRT54G or Linksys BEFW11S4 not the WAP54G or WAP11. Just be sure it is a Router first, with a wireless Access Point built in. Connect from the Modem Ethernet port to the Router WAN port. Then use a standard (not the old crossover) cable from one of the ports on the router to the desktop system. Get it working with Internet access and use it to setup the router as required. Then run a second cable from the router (one normally comes with most routers) to the laptop and test that it works. Then to go wi-fi, remove the cable from the laptop, and install the wi-fi card and set it up per instructions that come with it and the wi-fi router. This will allow you to connect the laptop either way.

Get rid of the crossover cable and get you a straight cat 6 cable

Any brands is should stay away from. Often compusa and tigerdirect.com have deals where you get a wi-fi router and a wi-fi pcmcia card for $30-$40.