If you wish to share your internet connection via WLAN when on a Windows XP Machine, you would think you will need a third party software, but No, this is a built in feature to Microsoft Windows XP.
Here is how to share your Internet Connection via WLAN (Wireless LAN)
1. Go to  Control Panel > Network and Internet Connections > Network Connections.
2. Right click on the connection which is used to access the internet in your machine. Generally, it is the Local Area Connection. Right click on it and select Properties.
3. In the Local Area Connection Properties window, click on the  Advanced  tab. Now check in the box indicating  Allow other network user to connect through this computer’s Internet connection  and click OK.
4. Repeat the step 1 and right click on the  Wireless Network Connection  then choose Properties Â.
5. In the  Wireless Network Connection Properties window select the  Wireless Networks Âtab.
6. Check the box  Use Windows to configure my wireless network settings and then click on Add ¦ Â.
7. Another window will pop up. Give a  Network name (SSID) > Keep the check boxes checked or unchecked as highlighted in the picture below > Select the Network Authentication as Open  and the Data encryption as  WEP  > type the Network key (Should be 5 or 13 Alphanumeric character) > Click on OK.
8. Now select connection and click on  Advanced Â.
9. In the pop up window click on the button  Any available network (access point preferred) Âthen click on close and the OK.
Your network has been created successfully. Now you have to connect to that network.
1. Go to  Control Panel > Network and Internet Connections > Network Connections.
2. Right click on the  Wireless Network Connection  then choose  View Available Wireless Networks Â.
3. Select the network from the list and click on  Connect  > give the security key > Click Connect Â.
Now if any one wants to use the internet connection shared by you, he should connect to this network providing the same security key. After successful connection, he will able to access the internet from his machine.
image credit:techtipsgeek