Sharing my Ethernet with Airport

I live in a dorm and for some stupid reason they disable the wireless network in the rooms. So I've been having my own personal wireless network in my own room by sharing the ethernet through Airport so I can use my iPhone. It was great, I never shut it off. I'd take my laptop with me to places and then when I connect it to the ethernet cable back in my room, the internet sharing turns on automatically too.
But ever since I got back in January the internet sharing randomly turns off by itself. I didn't change a single setting or anything. And the weird thing is that the iBook still thinks it's sharing! Look at the screenshot http://img.photobucket.com/albums/v336/hmarafie77/problem.pnghere.
http://img.photobucket.com/albums/v336/hmarafie77/problem2.pngThis is what it looks like before it turns off by itself. Once that little arrow is gone, there's no internet for my iPhone.
I don't remember if there was an Apple update between early December and January. But if there was, could it have had any effect on this issue or changed some settings or whatever?
Thanks.

You're right, I should have had only Airport checked and share my connection through ethernet.
The way I connect my iPhone to my Airport WiFi is by going to Airport Options in that same Internet Sharing window and that's where you create a network. Pick a name and password and then start the internet sharing. Your iPhone should pick up on that network you created, just enter the password and you're connected.
Thanks for pointing out my error!

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