Download the app from here (make sure you are logged into google play):
https://play.google.com/store/apps/details?id=com.googlecode.android.wifi.tether
then use these settings:
Device - Profile : Generic ICS/JB (wlan0)
Change SSID to something simple: tether
Wifi-driver reload 2: enabled
Make sure routing fix is: enabled
Then start tether.
After tether has started you should see "Other Network" in your list of wifi networks on the device you want to connect with. After starting a connection with "Other Network" it will ask you for the name of the network at which point you will enter the ssid name. In the example from above you would enter: tether.
voila wifi tether works.
ps make sure your connections optimizer is off or it will interfere with the app.