Check this video:
http://www.youtube.com/watch?v=nzmVPC3VfLk
Also with Windows 7 and lower Windows OSs using Virtual router plus you are able to create a hotspot. When installing in windows 7 you may face some issues.
http://www.youtube.com/watch?v=HMks0UFrF-w
Some common issues:
1. Virtual Router Could Not Be Started
- Close Virtual router
- Go to command prompt.
Go to START, enter "cmd", then press "ctrl + shift + enter" to open command prompt as administrator. If not right click and select open as administrator.
- Copy paste following two commands into command prompt, one by one.
netsh wlan set hostednetwork mode=allow ssid=myNetwork key=password
netsh wlan start hostednetwork
2. The group or resource is not in the correct state to perform the requested operation
In cmd try the following command:
netsh wlan set hostednetwork mode=allow
However, I could not get this to work in Windows 8.