Internet Sharing is slow for Lion 10.7.2?

[samdev]

I'm having some problems accessing the Internet via Internet Sharing.
The connection is very slow, on the wifi side.

Here's my setup:

iPod Touch (wifi) -> MacMini (internet sharing on) -> Cable Modem (ethernet)

iPod Touch: 4th generation, 802.11b/g/n WiFi
MacMini: MacOSX Lion 10.7.2, 802.11a/b/g WiFi
Cable Modem: 10Mbps ethernet connection

I'm connecting to the Internet with my ipod Touch, wirelessly through my MacMini, which
has Internet sharing turned on. My MacMini is connected directly to my cable modem via ethernet.
All devices are within an arm's reach of each other.

I looked up the transfer rates for the above Wifi protocols, and the slowest I should get is 11Mbps.

a = 54 Mbps
b = 11 Mbps
g = 54 Mbps
n = 100+ Mbps

Which is fast enough for me.

Now, if I open up the Network Utility on the MacMini, and select the Wifi interface,
I can see the transfer statistics. The wifi packets are trickling in, very slowing.
I'm getting maybe 10 packets every second. I try to use Safari, iTunes, App Store, Weather, GameCenter, etc...
on my iPod Touch, and all are dreadfully slow.

If I select the ethernet interface from Network Utility, and open up a browser on my MacMini,
I can see thousands of packets being transmitted every second, so the speed is good
on the ethernet side.

So, why is wifi data transfer so slow, even though the Network Utility may say the
Wifi link speed connection is 54 MBit/s ?

Is there anything else I can check?

 

[samdev]

Some more information.

iPod Touch wifi settings:

DHCP
IP Address: 10.0.2.2
Subnet Mask: 255.255.255.0
Router: 10.0.2.1
DNS: 10.0.2.1 (entered by me, no idea if it helps or not)


MacMini interfaces:

1. Wi-Fi: Self-assigned IP (169.x.x.x)
Network Name: Internet Sharing: On

2. Ethernet: Connected (using DHCP)


I assume 10.0.2.2 is a normal IP address for Internet sharing?

When I try to use Safari on the iPod Touch, website loading is very slow. However, when I open a browser
on the MacMini and click the refresh button, I get an unexpected boost in page loading on the iPod Touch
that only lasts for a brief second.

Does this sound odd?

 

[samdev]

I found out I can ping my ipod Touch from my MacMini.
The timing is horrible. Half the time, it doesn't even connect.

Ping has started.
PING 10.0.2.2 (10.0.2.2): 56 data bytes
Request timeout for icmp_seq 0
64 bytes from 10.0.2.2: icmp_seq=1 ttl=64 time=1204.644 ms
64 bytes from 10.0.2.2: icmp_seq=1 ttl=64 time=210.549 ms
64 bytes from 10.0.2.2: icmp_seq=1 ttl=64 time=77.377 ms
Request timeout for icmp_seq 4
Request timeout for icmp_seq 5
Request timeout for icmp_seq 6
Request timeout for icmp_seq 7
Request timeout for icmp_seq 8

--- 10.0.2.2 ping statistics ---
10 packets transmitted, 3 packets received, 70.0% packet loss
round-trip min/avg/max/stddev = 77.377/497.523/1204.644/502.957 ms

Shouldn't this be blazingly fast (<1ms) ? Almost as fast as pinging yourself?

Ping has started.
PING 127.0.0.1 (127.0.0.1): 56 data bytes
Request timeout for icmp_seq 0
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.050 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.058 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.150 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.142 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.167 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.152 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.112 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.160 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.168 ms
64 bytes from 127.0.0.1: icmp_seq=1 ttl=64 time=0.111 ms

--- 127.0.0.1 ping statistics ---
10 packets transmitted, 10 packets received, 0.0% packet loss
round-trip min/avg/max/stddev = 0.050/0.127/0.168/0.041 ms