This turorial is for those were able to setup the Hotspot, but the other device couldn't connect to the internet. This was because the permission to share internet connection was not given. If you face the same problem, then continue reading.

To share the internet connection , do the below steps

We have to allow ip forwarding:

#sudo gedit

edit /etc/sysctl.conf

Make sure the following line is uncommented and reads

net.ipv4.ip_forward=1

Save and close gedit. (reboot)

It worked for me...

Acknowledgement : http://thenewbieblog.wordpress.com/2012/05/01/wifi-hotspot-setup-on-ubuntu/