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I have a system with OSX 10.9, and another system with OSX 10.7.5. I am trying to setup internet sharing between the from 10.9 to 10.7.

10.9 has internet through WiFi, and I used a LAN cable to connect it to 10.7 system. If I use DHCP for settings, here are the IP addresses I get.

10.7 (client) 
Ethernet:
IP Address: 192.168.2.3
subnet mask: 255.255.255.0
Router: 192.168.2.1
DNS Server: 192.168.2.1

10.9 (Host) 
WiFi:
IP Address: 192.168.0.5
subnet mask: 255.255.255.0
Router: 192.168.0.1
DNS Server: 209.18.47.61/209.18.47.62

Ethernet:
IP Address: 169.254.32.154
Subnet mask: 255.255.0.0
Router: <blank>
DNS Server: <blank>

I remember facing the same issue few years back, and I resolved it by setting it manually. But I can't figure out what are the correct settings, Can someone please help me, it's really urgent!!

EDIT: I tried setting both of them manually (ethernet addresses) to:

10.7(client) 
IP Address: 192.168.2.3
subnet: 255.255.255.0
router: 192.168.2.1

10.9(host)
IP Address: 192.168.2.1
subnet: 255.255.255.0
router: 192.168.0.1

doesn't work either!

1

Your manual set up should work if you configure the 10.9 host to use:

IP address: 192.168.2.2
router: 192.168.2.1

Set the DNS to 192.168.2.1 as well.

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