Apparently it does work with Windows 8.1 but according to the Virtual Router site you have to type or copy in the following command into an elevated command prompt to get it working.
Virtual Router - Wifi Hot Spot for Windows 8, Windows 7 and 2008 R2 - Download: 1.0
netsh wlan set hostednetwork mode=allow
Exactly what I needed after flushing down the toilet Connectify Lite (Do not use the Lite version - Annoying as HELL ! ). Big thanks to the dev - works like charm on Windows 8.1 - still needed to set the wlan mode to allow - use elevated command prompt, then type in > netsh wlan set hostednetwork mode=allow