He has wifi from his ISP through his router (or modem) to his laptop.
Frank, why not just connect the phone to the router? Why use the laptop at all? You gain absolutely nothing doing it that way. (As for a static IP address, the gateway is the address the phone sees the laptop as, and trying one number higher [if the laptop is 192.168.0.1, use 192.168.0.2] will work if that's the only thing being tethered. (If the laptop i showing the same address range (192.168.1) as the router, you may have a problem.
The problem is, though, that the laptop is probably on the same channel as the router, it's using the same address range (192.168.1) as the router, you can't change that (if you change the router's channel, the laptop follows), so you're interfering with yourself. Just connect the phone to the router and be done with it. The router can handle t2 wifi connections at once, or a wired connection and a wifi connection at the same time.
(Or are you running off a modem without a router? In which case, I suggest that you get a router. Windows tethering is iffy at best, and a dark haired man can go completely white haired from trying to get it to work.)
(The password is the one you set in the laptop - unless you're connecting to a router. The only thing you need the ISP password for is a direct connect from the device [phone (which would require an Ethernet adapter) or laptop] to the modem.)
This is one of those situations that network engineers look for alternatives to. You're trying to set up the second most difficult situation there is. (Multiple repeaters, using the same SSID on the same channel, is the most difficult.)