Portable Hotspot connectivity problem

Hi guys, not sure if this question is for Windows 7 or for Android forum, but I'll ask and maybe you can tell me on which side is the problem.

I am trying to connect my Android phone as a hotspot for my laptop instead of the wireless router. I manage to activate the hotspot tethering, in the list of available networks I do see the Android signal. Then I connect to it and in the Network and Sharing center I see connection established between my computer and the Android Network. But the connection between the Network and the internet appears disable with red X. On my wireless icon I see yellow triangle with exclamation mark. When I try to troubleshoot it gives me the following report:

"The connection between your access point, router, or cable modem and the Internet is broken. The network gateway is accessible, but Windows couldn’t receive network traffic from the Internet."

I checked in the Network properties and everything is set to Automatic, IP and DNS. Can anyone tell me what could be the problem? Is it something in Windows, in my phone or maybe in my cellular provider? I don't see any additional setting in my phone for this connection. My phone is Nexus One, and it is working fine with my 3G and I have unlimited data plan.
Thank you.

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