Personal Hotspot doesn't work correctly

After upgrading my iPhone 4 and iPad 2 (Wi-Fi only) to iOS 5, the Personal Hotspot doesn't work the same way as it was in iOS 4. In iOS 4, I had the Personal Hotspot always turned on on iPhone and whenever I took the iPad and wanted to connect to internet, it connected almost immediately and automaticaly to the iPhone. Now (in iOS 5), I have the personal hotspot turned on again, however, the iPad even doesn't see the iPhone wi-fi. I have to unlock the iPhone, go to the settings (change nothing!) and than the iPad see the wi-fi. It is not automatical. Personal Hotspot was the reason, why I bought only wi-fi iPad and now it doesn't work well. Do you have any idea what to do?
Thanks

I have similar but mind bobbling issue. Using iPhone 4s with os5.01. Turned on hotspot, on the cellular data, tried reset network setting to factory default but my hotspot signal is not discoverable by my ipad2, laptop and other wireless devices.
Went to office, get my friend using iPhone 4 running os4.35 to turn on hotspot. Immediatedly found his hotspot in my ipad2 and the funny thing is that my hotspot signal from 4s suddenly pop up in my ipad2 wifi network, appeared in my laptop and other nokia phone without me touching anything on my 4s. Able to connect and work well. But as soon as I turn off the hotspot, it became not discoverable again when turned on. Tried resetting the network setting but nothing worked.
The next day, the hotspot signal become discoverable again as soon as my friend turn on his hotspot. It seemed that my hotspot signal need a another hotspot signal to appear. This is ridiculous. If my friend is not around, I will never get my hotspot connected to my iPad2 or make use of this capability.
Sounds funny but this is true and proven. It has been a week now that I keep repeating the same thing in office. I tried not turning off the hotspot after it is discoverable but it is draining off the battery faster.
Any tips you can share....

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