WiFi Internet Sharing Suddenly not Working

I'm using a MacBook white early 2008 with Lion 10.7.5 installed on it
I have been using internet sharing features to share internet from my ethernet to WiFi for several years, and it's working fine
Suddenly today when i'm using iPhone, it stopped working.
My iPhone can connect to the WiFi network, but it can't connect to the internet shared by the MacBook.
What is the possible solution to this problem?
Is it hardware related? Maybe because i use the Internet Sharing features too much?
ps : When i'm using the WiFi to connect to another network, it works perfectly fine.

FYI - I spoke to Apple support earlier and this is still not an acknowledged issue. Ergo, no one is looking into it.
They have 'offered' to call me back when at home to go over my setup that was working fine in IOS5 but not IOS6 as the setup MUST be the issue. Not sure if I made things worse by pointing out that I'm and IT consultant and have worked with Apple systems for more years than I'd care to admit to.....
The support tech I spoke said that her home sharing works fine. Hmmmmm.
I'd suggest that EVERYONE puts in for a support callback (you can go through the iPad option and chose the 'I should get an exception for updating to ios6' option) and get them working.

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