Wireless Ad-Hoc connection sharing in Ubuntu 10.10

  • dnsmasq-base has to be installed:

    sudo apt-get install dnsmasq-base

  • Remove dnsmasq because it conflicts with NetworkManager:

    sudo apt-get remove dnsmasq

  • Restart NetworkManager:

    sudo /etc/init.d/network-manager restart

  • Add a new wireless network with NetworkManager (left-click on NetworkManager icon, then select "Create New Wireless Network").
  • Set encryption to WEP 40/128-bit Key with a 13 characters key. (Note: You may have to experiment here according to what type of encryption with ad-hoc the device supports. WPA is not supported).
  • NetworkManager now should connect to itself (which means it creates the ad-hoc wireless network and routes any Internet traffic to your wired network interface). Now, connect with the client(s), and you should have a working Internet connection.
  • You have to make sure that this connection is shared to other computers and devices (clients). Make sure that the Connect automatically check-box is selected and on the IPv4 Settings tab make sure that the Method option is set to "Shared to other computers".