Starting and Sharing the Internet Connection
At this point, Windows 7 is ready to share the default Internet connection, which is the Ethernet Connection. However, we want to share the wireless card or WLAN connection instead. On my Windows 7 laptop, the wireless connection is called “National Access – Broadband Access."
In the dialog, right-click your wireless device and select "Properties." Windows 7 may ask for permission to continue. Click on the “Sharing" tab and select “Allow other network users to connect through this computer’s Internet connection" and click OK. This sets up Internet Connection Sharing, and this completes setting up your portable hotspot in Windows 7.
To use it, first connect to the Internet wirelessly using the usual method on your laptop. Then once you’re connected, go to Start → Network and select "Connect to wireless network." Click your new network under Wireless Network Connections. If all goes well, Windows 7 will report “The [network] is ready to use" and will stay active until everyone disconnects from it.
Your friends and co-workers should now be able to go to their Network Sharing Center and find your new network listed under "Connect to a Network." Note that only one Internet connection can be set up for sharing at one time. If you later decide to enable it for your Ethernet connection, you’ll need to go into Network Connections and Properties for your “Local Area Connection."