
Suppose you and a friend are at a hotel room with one ethernet port, but you both want to use the internet. Do not fear, you can come to the rescue by establishing a wireless network through your Macintosh’s built in AirPort card.
1) Plug the cable into your computer
2) Open System Preferences and go to the sharing section.
3) Locate the check box next to Internet Sharing and activate it.
4) Have your friend connect to your computer’s network
5) To change the settings/password of your network (default password is your admin password), uncheck the Sharing box then click AirPort Options

It’s an extremely simple process that is also useful in many scenarios. I recommend copy-pasting this article into a Word/Pages document so in case you forget how to do it, it’s only a Spotlight/Quicksilver search away.
Note: This article is about Leopard, Lifehacker has an article about how to do it in Tiger but it is essentially the same thing, just a different interface.