I've used it for a long time with on Windows 7. See the top answer in this post: Internet connection sharing over WIFI without modifying LAN adapter IP address

I've created two batch files, one for setting up the wifi, and one for teardown. The first one:

netsh wlan set hostednetwork mode=allow ssid=<YourSSID> key=<YourPassword> keyUsage=temporary
netsh wlan start hostednetwork 

The second one:

netsh wlan stop hostednetwork

I just run the batch files as admin - and everything works.

P.S. On Windows 8 however I have a little trouble with this.

Edit: You should enable internet connection sharing in your Ethernet connection, to be used by the new virtual connection (your wifi).

I've used it for a long time with on Windows 7. See the top answer in this post: Internet connection sharing over WIFI without modifying LAN adapter IP address

I've created two batch files, one for setting up the wifi, and one for teardown. The first one:

netsh wlan set hostednetwork mode=allow ssid=<YourSSID> key=<YourPassword> keyUsage=temporary
netsh wlan start hostednetwork 

The second one:

netsh wlan stop hostednetwork

I just run the batch files as admin - and everything works.

P.S. On Windows 8 however I have a little trouble with this.

Edit: You should enable internet connection sharing in your Ethernet connection, to be used by the new virtual connection (your wifi).