Creating Network using my MBP

[Blue muffin 25]

Could someone help me how to create a wireless network using the ethernet connection plugged into my macbook pro?

Since I just moved into my new apartment and haven't got time to buy a new wireless router yet, I need to use my MBP to be the router for now.

So far I've done:

So far I have enabled the internet sharing and checked the airport box.
Like so:

I went to network to set up a new connection name "Bacon". But when I try to connect to my "Bacon" network using my iPhone, it doesn't work. All it says is
"airport has a self assigned IP address and may not be able to connect to the internet", like so:

Could someone help me please? I don't know what I have done wrong.

 

[Randyroc]

Does your iphone say, "airport has a self assigned IP address and may not be able to connect to the internet" or is it only in the network pref panel?

I would try deleting that Airport configuration (pressing the "-") then adding (pressing the "+") a new Airport configuration, in essence starting that from scratch. It'll give you options for which channel you want to run the network on, but I'm not sure if this matters or not with regards to the iphone.