I have windows 7 and I just created my laptop as a wifi hotspot using a USB internet (tata photon)
All you have to do is (“make sure your wireless is on”)
Goto Network Sharing Center and click on Setup a new Network Connection or network
Select Setup a wireless Ad-hoc
Give the connection a network name, select the security type (recommended WPA2) and enter the security key
Then the network will be created. Now you have to give shared permission to your internet connection.
For that click on Change adapter settings on left hand of network and sharing center
Right click on your internet, in my case tata photon, then select properties>sharing> here click on the check box of allowing others to use the internet connection……. (the first one only) under that just select wireless connection and then you are done.
Its simpler …no wires ….no worries….
Have a happy and secured wireless connection