Bluetooth tethering might also be a solution.
That truly works out of the box on Android 3.0+ (and with 3rd party apps on 2.2+). It'll be just fine if you can tolerate the low data rate (BT 2.0 offers 2.1MBit data rate) and the distance between phone + bluetooth-tether client is not too far. In this mode the wifi operates normally and the 2nd (client) connection is done via bluetooth PAN profile, look here for more info:
http://android.stackexchange.com/a/24211/15713
I have done this in blind spotted hotel rooms: put the phone in a good spot and then BT tether.
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