Virtual Router turns any Windows computer into a Wifi Hot Spot using Windows Wireless Hosted Network (Virtual Wifi) technology.
The Wireless Network create/shared with Virtual Router uses WPA2 Encryption, and there is not a way to turn off that encryption. This is a feature of the Wireless Hosted Network API's built into Windows 7 to ensure the best security possible.
You can give your "virtual" wireless network any name you want, and also set the password to anything. Just make sure the password is at least eight characters.