I tried many ways to solve this problems, non of them works. Until I found this solution.
Two steps required. Before moving on, please make sure your system is Windows 7.
Download and install the newest driver for your wifi from here (32 bit, 64 bit) (Very important).
Click start, enter “cmd”, press “ctrl + shift + enter”. This allows you to open DOS under admin.
Copy paste following two commands into cmd, one by one.
netsh wlan set hostednetwork mode=allow ssid=Test key=password
netsh wlan start hostednetwork
Now launch your virtual router, it should work well.
Download VirtualRouter from here : http://virtualrouter.codeplex.com/releases/view/36035
If WiFi is connected and no internet access, Just open network and sharing center and take the properties of current network having a working internet connection, in sharing tab, enable sharing of internet (1st option in Win7 and Win8). 🙂