Internet Sharing won't work, greyed out... but not on! Suggestions?

I'm trying to start internet sharing on my MacBookPro (13-inch, Mid 2012).
I'm running Mac OS X Lion 10.7.4 (11E2617).
Ethernet is on and connected. Wifi is on and connected to a created network (which I created to share out my internet).
Why are the options to turn it on greyed out? Any suggestions appreciated, as I'm tearing my hair out here.
Also, the box to turn on internet sharing is greyed out. (a non greyed out box appears as fully white when selected in the list.)
Any help is much appreciated.
Thanks!

Someone help here?

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Windows IP Configuration
   Host Name . . . . . . . . . . . . : Mark-PC
   Primary Dns Suffix . . . . . . . :
   Node Type . . . . . . . . . . . . : Hybrid
   IP Routing Enabled. . . . . . . . : No
   WINS Proxy Enabled. . . . . . . . : No
Ethernet adapter Bluetooth Network Connection 2:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Bluetooth Device (Personal Area Network) #2
   Physical Address. . . . . . . . . : 44-2A-60-CF-D0-93
   DHCP Enabled. . . . . . . . . . . : Yes
   Autoconfiguration Enabled . . . . : Yes
Wireless LAN adapter Wireless Network Connection 2:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Microsoft Virtual WiFi Miniport Adapter
   Physical Address. . . . . . . . . : 32-9A-DD-9F-1D-FF
   DHCP Enabled. . . . . . . . . . . : Yes
   Autoconfiguration Enabled . . . . : Yes
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   Description . . . . . . . . . . . : Broadcom NetXtreme Gigabit Ethernet
   Physical Address. . . . . . . . . : C8-2A-14-1B-EE-D1
   DHCP Enabled. . . . . . . . . . . : Yes
   Autoconfiguration Enabled . . . . : Yes
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   Autoconfiguration IPv4 Address. . : 169.254.248.153(Preferred)
   Subnet Mask . . . . . . . . . . . : 255.255.0.0
   Default Gateway . . . . . . . . . :
   DHCPv6 IAID . . . . . . . . . . . : 348662292
   DHCPv6 Client DUID. . . . . . . . : 00-01-00-01-17-CD-DA-86-10-9A-DD-9F-1D-FF
   DNS Servers . . . . . . . . . . . : fec0:0:0:ffff::1%1
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                                       fec0:0:0:ffff::3%1
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Wireless LAN adapter Wireless Network Connection:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Atheros AR938x Wireless Network Adapter
   Physical Address. . . . . . . . . : 10-9A-DD-9F-1D-FF
   DHCP Enabled. . . . . . . . . . . : Yes
   Autoconfiguration Enabled . . . . : Yes
Tunnel adapter 6TO4 Adapter:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Microsoft 6to4 Adapter
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
Tunnel adapter isatap.{077AEF3E-6752-42C5-A037-9FB69A17CB27}:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Microsoft ISATAP Adapter
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
Tunnel adapter isatap.{83EF0082-ADD7-4283-8303-9133BD882E39}:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Microsoft ISATAP Adapter #2
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
Tunnel adapter isatap.{22AA845D-6210-4549-AAE5-3D8917BA7286}:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Microsoft ISATAP Adapter #3
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
Tunnel adapter Teredo Tunneling Pseudo-Interface:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Teredo Tunneling Pseudo-Interface
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
Tunnel adapter isatap.{D364C869-F7DD-4F9A-ADBA-7EBF53DD21D2}:
   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix . :
   Description . . . . . . . . . . . : Microsoft ISATAP Adapter #4
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes

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