Make RaPi into a WAP.
from Paul's article located here
Install the packages required
Type: sudo apt-get install hostapd bridge-utils iw
At this time you should be able to test that the nano wifi you have inserted does not support the nl80211 api which the current versions of hostapd require to function.
Type: iw list
nl80211 not found
The output above is a good sign that we are on track and require the older hostapd to function (we download it later).
Modify the default configuration files as shown
Type: sudo nano /etc/default/hostapd
create the configuration file as shown below and consider changing the ‘ssid’ & ‘wpa_passphrase' to match your own preference a word of warning the wpa_passphrase is between 8 - 63 charaters long. The 'country_code' should also be adjusted to match your location
Type: sudo nano /etc/hostapd/hostapd.conf
Make a backup of the existing configuration file and then modify as shown for a simple DHCP client configuration.
Type: sudo cp /etc/network/interfaces /etc/network/interfaces.bak
Type: sudo nano /etc/network/interfaces
iface lo inet loopback
iface br0 inet dhcp
bridge_ports eth0 wlan0
iface eth0 inet manual
iface wlan0 inet manual
Backup the existing hostapd binary file
Type : cd /usr/sbin
Type: sudo cp /usr/sbin/hostapd /usr/sbin/hostapd.bak
Now delete the original
Type: sudo rm -f hostapd
Download the replacement hostapd binary for one that supports the rtl driver api
Type: sudo wgethttp://dl.dropbox.com/u/1663660/hostapd/hostapd
Set ownership and permissions of the downloaded file
Type: sudo chown root:root hostapd
Type: sudo chmod 755 hostapd
Finaly, restart the subsystems to activate the changes.
Type: sudo service networking restart
Type: sudo service hostapd restart
You should see the your Raspberry Pi SSID on a Wifi scan of another device, the range is quite short so make sure you are close by.