I had some issues with different ROMs as well well getting wifi tether to work, but here is what I have which currently works:
a. Thundershed 1.5
b. IMO Lean Kernel 6.1 for AOSP
c. Latest Radio from 2.11.605.19
d. wireless tether 2.0.7
- Be sure to check the Routing Fix in Settings
When I start up Wifi Tether it brings up "Tethering or hotspot Active" in the status bar from the built-in hotspot, but that doesn't seem to affect wifi tether.
Also, when I first set it up I started it, let it setup the binaries and get superuser permission, then I stopped it, let it do whatever, then started it again.
I can connect without issue now. I hope this helps in some way.