Personal hotspot not recognized by MBA?

My wife has an iPhone5, and unlimited ATT service. We also have an MBA 10.8.3 and iPad1. When trying to use the iPhone5 personal hotspot to connect with the MBA, the phone does not appear on the list of available networks. If then follow steps on iPhone of Settings>General>Cellular>Set up Personal Hotstop and turn it off and then back on, it will usually appear on MBA list of networks and works fine. It just never appears on its own. However, it appears and works for the old iPad. Is problem in MBA?
thanks for any help.

Update on the above:
I did some more research on this using assorted of my 2nd gen nanos and a couple 1st gen ones as well.
It's only the 2GB 2nd gen nanos MA477LL part number, that do not work with Lion / 10.7.4 / iTunes 10.6.3.
2nd gen MA477LL does not work, it's a 2GB model. I have two of these. Neither works.
2nd gen MA428LL works it is a 4GB model
2nd gen MA426LL works it is a 4GB model
1st gen MA352LL works - it's a 1st gen nano refurb (1GB)
1st gen MA350LL (1GB) - this is another 1st gen nano refurb, but one that's formatted for Windows (and had nothing on it when I connected it). For some reason it mounted fine in Mac iTunes environment and even let me drag an AAC track onto it. I was dumbfounded. On the desktop, its sys info showed info like any FAT32 flashdrive but it did have an iPod nano icon on it. I ejected it from iTunes and plugged in a pair of earbuds and hit play on the track. It plays fine. Go figure! I rechecked the settings in the device. It does say Windows for the format. I feel like I'm in the Bermuda triangle. I might have to reformat it next time a Windows iTunes setup sees that nano though.
So bottom line here with the second gen nanos: it's the 2GB model, the 2nd gen nanos with model MA477LL that do not work in Lion and iTunes 10.6.3 for whatever reason. Both of my devices with that model number do work fine on an older MBA running Snow Leopard and iTunes 10.4.

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