Success!!!!!!!!!!!!!!!! I had the same problem, fully connected, gray bars and no internet access. I am not computer savvy but I did the following to get it work.
1. updated rom from version1.(something) to 2.6. before was working fine.
2. An article suggested to go to setting/ date and time/ and uncheck automatic date and time (due to a bug in some nexus 7)
2. re-ran Busy box.
3. removed android firewall. (was off all the time).
I don't know which one of these changes corrected the problem but when I re-launched my tethering application and I was able to gain access to the internet again. The gray bars changed to blue with a strong connection.
Root, running beat mode crystal clear version 2.6 rom, android 4.2.2, CM 10.1 kernel.
hope this help.