Tested with Kindle keyboard 3G and Kindle Fire. Great tip.
HOW TO GET IT TO WORK:
A. On your Mac:
- Make sure Internet works in general and that internet sharing is properly configured and works with another (Apple) computer / iDevice (Apple device)
- System Preferences => Sharing => Internet Sharing (disabled to configure) => AirPort (enabled) => AirPort Options...
- Network Name: (alpha characters, upper/lower case mix, no spaces; other characters might work, not tested; space(s) in-between might work, not tested)
- Channel: Automatic
- Enable encryption (using WEP) => enabled (optional)
- Password, Confirm Password: (optional, 5 characters or 13 characters, depending on key length at next step, alphanumeric tested, upper/lower case mix tested, other characters tested but not as the first character)
- WEP Key Length: 40 or 128 bit (both tested)
- OK to confirm => Internet Sharing (enabled) => Start
B. On your Kindle:
- Make sure the network name you chose above shows up, if not select "Rescan".
- Connect => Password (optional, if encryption selected above)
- Unable to Connect to Wi-Fi Network => set up network
- Network Name: (should be properly filled in)
- Connection Type: static (switch to)
- IP Address: 10.0.2.x (I chose 4 for x)
- Subnet Mask: 255.255.255.0
- Router: 10.0.2.1
- DNS: 10.0.2.1
- Security Type: WEP (WPA, WPA2 so far unsupported by OS X)
- Password: (should be properly filled in)