Redmond had plans to create this software but it decided to end its production in 2006. Nomadio noticed that Windows 7 have the code present in it.
The CEO explained, “You’re sitting in a coffee shop that charges you for a wireless connection. With Connectify, I can pay for that connection, and still have all my other devices, like my iPhone, connected to the Internet.”
Source: The Register

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Hmm… That’s funny. I wonder how the Connectify CEO “noticed” all this stuff but FAILED TO NOTICE that the functionality *is* in fact finished and *is* already included in Windows 7, and without the need for any 3rd party software, including his own.
A quick google finds Microsoft’s documentation: http://msdn.microsoft.com/en-us/library/dd815243(VS.85).aspx and an easy to follow blog post http://tameyourpc.blogspot.com/2009/07/windows-7-as-wireless-access-point.html
Works like a champ. The only potential problem is that your wireless adapter/driver must support Virtual Wifi. Not a problem if your laptop is Windows 7 Logo certified, it’s a requirement, but older wireless adapters may not support the feature, which means it won’t work even with Connectify’s useless software.