Currently Being ModeratedMay 11, 2012 6:18 PM (in response to jodyr)
Same for me. You are not alone, see https://discussions.apple.com/message/18349159#18349159 ...
Currently Being ModeratedMay 22, 2012 10:54 PM (in response to 01taylop)
It looks like preventing display sleep keeps VNC Server running, but doesn't fix Internet sharing. I don't know if the two problems are related, but it seems like VNC Server stopped working with the 10.7.4 update.
Currently Being ModeratedMay 23, 2012 8:11 PM (in response to jodyr)
The Apple Care Senior Advisor called me back this afternoon (he left a message on my voice mail). Told me to turn off security on Internet Sharing (I had WEP Security). I turned it off, and lo and behold, I have sharing back! It's been working good for over an hour.
He did say in the message that knowing if this works will help towards a fix for this, and that I won't have to leave my sharing open without security.
Anyway, try turning off your security on your Internet Sharing in your system preferences and see if that helps. Good luck.
Currently Being ModeratedMay 23, 2012 9:43 PM (in response to Ron Voss)
That's frustrating. Mine is still on. I will be talking to the Apple Care advisor tomorrow. Do you have a mid-2011 iMac? I will tell him that turning off security worked for some, but not all.
Currently Being ModeratedJun 6, 2012 12:56 AM (in response to Myra J)
I tried this for a view minutes and it worked very well, but it's not an acceptable solution for me to leave my internet without security. My internet sharing computer is also a mid-2011 iMac. Have you heard anything of the Apple Care advisor now?
Currently Being ModeratedJul 6, 2012 7:26 AM (in response to marlene_b)
This may not be Lion specific problem. I have been using Internet Sharing with my 2009 iMac's using (SL 10.6.8,) built in Airport for quite some time to stream video through a media player, use an iPhon eand iPad. Worked fine although I would have to rstart once a week or so.
On July 4 I got a software update notice to upgrade Airport Utility to v.5.6.1. which I did.
No more internet sharing, I get the message Airport has a self assigned IP address 169.... and cannot connect to the internet.
Airport will connect to another network in the area (Neighbos unprotected guest network) but will not connect to internet sharing.
Have deleted prefs, repaired permissions, trashed the new Airport Utility and reinstalled old one, jumped through hoops, no luck.