If you are running Windows 7 you can turn your PC into a Wi-fi hotspot by installing a small program called Virtual Router Manager. Yes, you need to have wireless adapters on all the devices as well as on your computer for it to work. This is especially good for people who have more than one computers at home and since internet connection can be enabled to both without using a router or switch.
Using it is very simple and just require a username and password. Moreover the wireless connection is encrypted with WPA2 encryption. The security of your connection depends on the complexity or length of your password. The password/phrase is to be atleast 8 characters long.
Unfortunately, this does not work with Windows XP/ Vista or the starter version of Windows 7.
Further information about Virtual Router Manager is available at its websitehttp://virtualrouter.codeplex.com/
That's it!
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