Windows 7 Ics Problem

[Rodio]

First of all, I am writing this post after searching and reading all related ICS issues with Windows 7 in this forum and at the end I ran out of suggestions.

I have my Fonera Router(2100) up and running. OS is Windows 7 64bit.

Network Wireless Access Point(ISP) 192.168.1.1

Fon Router with Jasager

Ip Address: 192.168.137.137

Default Gateway: 255.255.255.0

Subnet Mask: 192.168.137.1

On the Laptop(Attacker), If I enable ICS on the WLAN interface, It by default assigns 192.168.137.1 (Microsoft Design) on the wired LAN interface.

Karma is ON. Clients(victims) can connect to the AP, they get an IP address from 192.168.137.* network and I see that the default gateway is 192.168.137.137.

Even the clients(victims) get IP address, they cannot go to the internet. However I can ping outside from the Fonera Router. From the Fonera Router, I am able to ping 8.8.8.8. Between the clients(victims) and Fonera, I can ping each others. Clients(victims) cannot ping 8.8.8.8

What am I missing? Any tip and trick you may provide to troubleshoot this and to narrow it down, I would highly appreciate.

Thank you.