Internet Connection Sharing(ICS) on windows 7 does not work even though connected to host

Internet Connection Sharing(ICS) on windows 7 does not work even though
connected to host

So below are the details of hardware/software I am using for ICS.
1.Windows 7 as host
2.Android Phone(Micromax canvas 2 as client 3.EDUP nano usb wifi adapter
4.Data card(usb modem) for internet access on Windows 7
So I have enabled the sharing and done all the basic stuffs required for
ICS. Below are the snapshots of some settings:

Now when I try to connect my android via wifi,I gets connected
successfully. I am able to send files over wifi, Use DroidCam BUT Unable
to access internet. When I try to use internet on phone,The browser tries
to load the page for a while and finally times out. SO where I am making
mistake? I also used Connectify but no luck! Please help!