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Windows 7 introduced Virtual WiFi which allows you to create hotspots. However I can't find any tutorials on doing it in C#. I found Virtual Router (It is open source and is written in C#) but I can't seem to figure out how it works because it has a lot of unrelated code since it is implemented as a service.

Can anyone explain how can I create a hotspot and assign IP addresses to clients? I don't need features like ICS but I want to be able to broadcast gateway and DNS information.

There is also a closed source alternative called Connectify. I did manage to get its source but it didn't help much. It uses an open source library but I don't know how to create hotspots with it.