Is it possible to set up Android in ad-hoc peer-to-peer wifi mode? For example, I would like to have one phone broadcast a message, and have all peers in the network receive the broadcast, without having a server. I would like to use wifi since bluetooth range is more limited.
Android phones and Android tablets cannot connect to Ad Hoc networks, by default.
Android P2P is now called WiFi Direct. On the Settings panel select Wi-Fi. You'll see a list of WiFi networks but you want to click the menu button on the lower right (the vertical ...). This opens up a submenu with Wi-Fi Direct as one of the options, select it.
A peer-to-peer (p2p) overlay network consists of a dynamically changing set of nodes connected via the Internet (i.e., IP). A mobile ad hoc network (MANET) consists of mobile nodes communicating with each other using multi-hop wireless links.
HotSpot requires a Wi-Fi connection and works like your Wi-Fi Network at home. The HotSpot will normally only allow you to use the Internet. Not interact with other computers or gadgets using the same HotSpot. The Ad-Hoc is a wireless network without the need of a big Server, or a Router.
Here's a bug report on the feature you're requesting.
It's status is "reviewed" but I don't believe it's been implemented yet.
http://code.google.com/p/android/issues/detail?id=82
Although Android can't find and connect to ad-hoc networks it sure can connect to Access Points. So as a work-around you can turn your Wireless Card into an Access Point using, for example, Connectify.
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