Create Wi-Fi Hotspot,Use Laptop as Wireless Router with Windows 7:

Virtual Router converts any Windows 7 or Windows Server 2008 R2 on a WiFi access point to Windows 7 hosted wireless network (virtual WiFi) technology. Virtual Router router is a free software that works with Windows 7 or Windows Server 2008 R2.
MAKE UR LAPTOP A WIRELESS HOTSPOT FOR USING IT AS A WIRELESS CONNECTION:

Users can wirelessly share any Internet connection (WiFi, LAN, cable modem, dial, cellular, etc) with any Wi-Fi device (laptops, smart phones, iPod Touch, iPhone, Android phone, Zune, netbook, wireless printer, etc.) These devices connect to the virtual router as any other access point and the connection is fully secured with WPA2 (the most secure wireless encryption.)



Unlike other similar applications, Virtual Router is not only completely free, but do not bother with any ad. Also, since the Virtual Router is not advertising, does not track your web traffic, the way of other applications with advertising / can.
# Download Virtual Router : LINK
The wireless network or to create shared virtual router uses WPA2 encryption, and no way to disable the encryption. This is actually a feature of the wireless network hosted API built into Windows 7 and Server 2008 R2 to ensure the best possible security.
You can give your "virtual" wireless network in any name you want, and also set the password to anything. Just make sure that the password is at least 8 characters.