For those of you with jailbroken iPhones, PdaNet is the best way to accomplish tethering. If you’ve used it in the past and not been very impressed, give it another chance. The newest version is much easier to use and you won’t be disappointed. The latest version doesn’t require you to do anything special to your proxy settings on your browser like other apps (and the old PdaNet). It really only takes a few seconds to get set up.
Step 1: Create an ad-hoc network
Step 2: name your ad-hoc network (add password if you're in a public place)
Step 3: Connect to the ad-hoc network with your iPhone
Step 4: Open PdaNet
Step 5: PdaNet will verify the internet connection on your iPhone
Step 7: You're connected!
Now, to keep your connection running, do not press the home button. Simply press the off button at the top of the phone while keeping PdaNet in the foreground. PdaNet has a feature similar to Insomnia that will allow the application to run while the screen is off. Pressing the home button and using another application will result in the closure of the PdaNet application once the phone tries to free up memory for the next application. To return to your internet browsing, simply reopen PdaNet.
Note: I haven’t actually been able to confirm that PdaNet always works when you press the off button. I actually use the Insomnia application at the same time I’m running PdaNet.
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[...] PdaNet – This isn’t on the list but it should be. This application (that I’ve written about before) lets you tether your iPhone to your laptop to get wireless internet connectivity everywhere you go! 3G speed is actually very impressive through your laptop – it’s much faster than your iPhone can process web pages. PdaNet is a must have and one of my personal favorites. [...]