"WiFi is disabled.." message while tethering

[chr15m]

If you tether your laptop to the Android device via WiFi hotspot or USB (which creates a network) the application will not let you stream.

[stfbee]

As far as i know, tethering in android doesn't allow clients to transfer data between itself and android device

[chr15m]

Yes it does. Your laptop gets an IP in the range 192.168.42.XXX and this is a normal network connection.