Is that a wireless-only router?? Otherwise connect Amy directly and that's it. Your setup's way too complicated.
I'm not sure if Internet sharing through the iBook works since that iBook only has a NATted connection itself. You don't need ICS, you need simple routing through the iBook.
Thomas' point is very valid. Try this:
- ping iBook (works)
- ping Router (if that fails, the ICS is bad)
- ping some IP outside (if that fails, the iBook's ICS in combination with NAT on the router is bad)
- setup default gateway and DNS as Thomas wrote