How about wireless router is connected to modem(dsl/cable). All devices are then connected to the wireless router via wireless or wire(should be 3-5 ports for wires). If range is an issue buy a long range wireless router. I think you need to explain your itouch connection more to us.
What I think your trying to do is use your laptop as a bridge. Itouch connects to laptop and laptop connects to the internet basically. Just connect your itouch to your wireless network is the simple fix. Do not try and connect your itouch to your laptop via shared internet connected wizard in Windows if your wanting internet access for your itouch, unless you absolutely must.
As for SSH/SSL I don't see where your wanting to use it besides using it as a complete encyption program to anything that comes in or out of your modem.
If your wanting your wireless transmissions encypted I suggest you find a 3rd party encyption software that encypts your stuff before its turned over to the NIC card for transmissions to the internet. Your issue will come where who is getting the encryption so they can decypher it. If your trying to protect your wireless transmissions without alot of hassble, switch to wired. WEP is crackable if you set it up on your wireless network. WPA2 is the latest usage in wireless access protection. I will tell you this since I am in the field of Information Security, anything that is transmitted by air can be captured and decypted.(phones,tv,satellite,etc) You can also try to create "secure tunnels" for transmissions to go through between your wireless devices you will need to find an SHH tunnel program.(Putty for example) Not all devices can use SHH/SLL technology and be able to understand what your trying to do. Routers just route information(by looking at headers) and careless about the true data coming through unless you have QoA set up.
If your wanting all information outgoing and incoming from the internet/other programs, you simple cannot. Again not all devices will understand encyption or encypted traffic. The best way to secure yourself is make sure to use the built in SHH/SLL functions to webpages when they are offered, such as checking email via a web mail service. Check your browser to see if shows the Lock and the address shows "https" in the begining.
I use Putty to tunnel from my computer to my webserver, from there I can access my web server from command line. I also have FireFox set up also to go through the same tunnel and I can get to the internet via a "secure tunnel" from my machine to my webserver, the webserver out via internet traffic (port 80) it is not encypted.
I suggest you do some research on Proxy Servers and Web Proxy's also if your trying to secure internet traffic.(FYI: not all proxy's are anonymous)