Following your instructions, I noticed it downloaded 0.3.5 instead of 0.3.4 like you claimed yours did. Anyway to force it to use the old package (assuming that is what is wrong)? Were there additional steps beyond rebooting that you used to kick off DHCP?
sudo gainroot apt-get remove --purge mobilehotspot
apt-get install mobilehotspot=0.3.4
Lastly, how do you shut off your connections before starting MHS? (my connections seem to establish after rebooting, regardless of the state of the device on shutdown).