Internet connection without WiFi

Is there anyway to allow my iTouch to access the internet when connected via the USB cable to my macbook?
Is there any way to use "AirPort" to establish a connection between my macbook (when connected via a cable to the internet) and my iTouch, to allow my iTouch to piggyback off my macs internet connection?

Sure. Assuming your Mac is plugged into an Ethernet Cable, go to System Prefs, Sharing, Internet Sharing and select Airport.

Your Mac will now act as a wireless hub for other devices to connect to via WiFi. It sets up a local network that can be connected to and you can even password protect it and name the network if you desire.

I do this often when staying in hotels so my iPhone can use the WiFi and share my Macs connection, especially when the hotels connection isn't free.