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I upgraded my Nokia Lumia 800 to 7.8 using Zune. I forced it. I can see Internet Sharing in Settings but I can't turn it on. When I try to turn it on I get the error message "There is no cellular data connection right now. Check your cellular settings and signals right now and Try again.".

What should I do?

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    Have you checked your APN settings? – Rowland Shaw♦ May 31 '14 at 15:10
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Before turning on internet sharing, you should enable your cellular data connection

http://www.windowsphone.com/en-us/how-to/wp7/start/cellular-settings

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