Here is what I discovered:
If there is an apostrophe in your device's name, you can connect but data won't transfer. My iPad 3's name was "Brian's iPad". When I changed it to BPad - Voila! It works!
In typical Apple fashion, they provide few options and do not give the user the ability to name their Wi-Fi Hotspot SSID directly. Instead, they use whatever name the user gave to their iPad. They apparently didn't test this very thoroughly. I am guessing apostrophe's are not permitted in SSIDs.
So if you are having WiFi Hotspot connection issues, check your iOS device's name to see if it has an apostrophe in it. You can change it in Settings - General - About - Name.
Once again, Apple doesn't 'Just Work'.
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