I have set up my connection as per the following article
http://www.siyge.com/2013/03/24/create-hotspot-in-windows-8-adhoc-network/
The netsh commands I used are:
netsh wlan set hostednetwork mode=allow ssid=MyWlan key=qwertyui keyUsage=persistent
netsh wlan start hostednetwork
The difference is:
a) I am sharing a USB modem connection
b) I have turned off Windows Firewall ( I use Comodo nternet Security)
I have a dell n5010 laptop using Windows 8.
When I tried to connect my Android device to it, the device simply gets stuck at the "Obtaining IP address step"
I decided to use a Blackberry device and the same error occurred.
To be doubly sure, I even used another Laptop running Windows XP SP3 to connect to the hostednetwork, even it got stuck at the "Obtaining IP address" part for some time. Then it got connected with "Limited or no connectivity" status.