iMac internet sharing port problem

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All and any assistance gratefully received on the following problem.

Our household has an iMac, a Mac Book Air, a Win7 laptop and a Win7 desktop. Both Macs are running Lion. The desktops are connected to a wireless router via power line network adaptors. The laptops connect via said router's wifi. However, our house was built of brick by the Victorians, and the wifi signal does not carry everywhere - the main phone connection, to which the router is connected, is at the other end of the house from the study.

My iMac is in the study, and I recently discovered I can use it's wifi adaptor as a hotspot, which would solve the problem rather neatly, as the study is the worst wifi blackspot.

However, when I go to the Sharing tab in Preferences, the Internet Sharing check box is greyed out, and the following message is displayed:

You cannot start Internet Sharing because you have not selected a port to share this connection

I have tried to find a solution via various threads and Google searches, but have not found any that match this fact pattern. Several refer to AirPort, but this does not seem to be a feature of Lion. I'm not sure if it's relevant, but the iMac was shipped with Snow Leopard and upgraded to Lion via a AppStore.
 
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Performa 6116 2GBSCSI 8MB OS 7.5.3
In Sys Prefs > Sharing > Internet Sharing

The "share your connection from" should say Ethernet

The "to computers using" should have WiFi checked.

Then check the internet sharing check box on the left. Then click start in the dialogue box.
 
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Thank you for the quick response, MacsWork. Unfortunately, it does not seem to work. I have selected the "Ethernet" and "Wifi" options selected, as you suggest, and I still get the same error message. In fact, I get it whichever "to computers using" option I select - Wifi, Bluetooth, Firewire.

Could it be a problem with compatibility with my router? I should add that the iMac has no trouble getting an internet connected via the router over the power-line ethernet connection.
 

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