Now, given a non-halting problem (<H>, w), we proceed as follows: We make a new TM say A, which on input x, just simulates H on w for |x| steps. If H halts on w, A goes to reject state. Otherwise, it accepts. So, L(A) = Σ∗ if H does not halt on w and L(A) = a finite set if H halts on w. (If H halts in |x| steps for w, any string with length greater than |w|, would certainly be not in L, making L a finite set).
Please someone make this part more clear....