Unfortunately the buttons are misnamed. The "Multiplayer" button is for LAN games. The "Ironclad Online" button is the one you want for online multiplayer. To play online you need to have the lastest patched up version of the game. (You patch it with Impulse at http://www.ImpulseDriven.com. You have to create an account and register your CD key, etc.) When you click Ironclad Online you'll also need to register an account and then create a player name ("Add Player") and then select it ("Use Player").
Anyway, welcome to the online multiplayer community! Sins online is much more challenging than playing against the AI and it's a tremendous amount of fun once you know what you are doing and can hold your own against the other players.