No internet sharing

  mgmcc 16:39 08 Oct 2004

<<< the host assigns an automatic private IP 169.254 etc address to the wireless adaptor rather than a DHCP assigned address 192.168 etc >>>

The host is not assigning the "169" address, Windows is defaulting to this address because the network adapter cannot find a DHCP server to get the correct address from.

Presumably, ICS has been enabled on the network adapter in the 'host' PC and its wireless adapter is getting the correct fixed IP Both wireless adapters should be set to use "Ad Hoc" networks - does the host PC's wireless adapter find the network?

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