A developer has managed to hack his way into getting USB tethering to work on the recently release iPhone 3.0 beta – He claims he was “hacking around” with some carrier bundle files and iPhone 3.0 and somehow managed to activate the tethering preferences, that’s some epic iPhone Hacks! Not only is that epic but he was successful on tethering his iPhone 3G to his laptop! If you don’t know what tethering is, it’s a feature that allows you to share your iPhone’s internet connection with your laptop, but has not been allowed up until iPhone 3.0

Based on the images above, it appears you’ll not only have the options for USB Tethering but also bluetooth! Pretty awesome, eh? Sadly, the developer doesn’t know what he did exactly to enable this feature. Very sad, indeed. Apple had admitted tethering capabilities were built in into the iPhone 3.0 firmware but had not yet coordinated with mobile carriers. Very clever iPhone 3G Hacks and developer!

- source: macrumors.com

If you’ve been wanted to tether your iPhone to your fabulous Macintosh machine or your Windows PC then you probably already know you can’t really tether your iPhone to your computer without Wi Fi and an AdHoc connection, something easy to do for those with enough experience but something difficult for your grandmother. There’s applications on the AppStore such as NetShare to “tether” your iPhone to your computer via and adhoc connection between the iPhone and the computer which then allows you to use your iPhone’s 3G or EDGE connection on your computer.

AT&T has received tremendous amount of demands by users who want/need this feature on the iPhone. So, AT&T may soon respond with iPhone Tethering, at extra charge of $10USD per month – this is AT&T of course.

“iPhone tethering is primarily an AT&T offering, but it involves Apple at least wanting or allowing the service, which they do. If it doesn’t function as expected, I know of a few people who may lose their jobs,” my colleague explained. “While you may think it’s as easy as streamlining our Blackberry tethering service over to the iPhone, it’s not. Connection may be tied into iTunes, and Apple is incredibly controlling when it comes to this space.”

Macblogz reports the following:

• It did not show up this week
• A launch date has not been set
• $10USD per month

- source: macblogz.com

With blazing fast 3G speeds and some areas being lucky enough to enjoy unlimited bandwidth with their cell phone package, a long awaited app has been iPhone 3G tethering. It has arrived! We’re not talking about NetShare which made a very brief appearance on the App store last month before it got pulled. iPhoneModem.com have released their iPhoneModem App to the masses via Cydia. This means you will require a jailbroken iPhone or iPhone 3G to use this App.

Don’t get too excited though this App isn’t completely free, it’s shareware that you can freely use with an annoying nag screen. If you wish to pay to get rid of this nag screen you need to register and receive a code based on your iPhone’s IMEI, no price has been published while writing this post.

This is a quick tutorial to help you with iPhone tethering for your PC or Mac. Please note this is against AT&T’s data usage policy. You could get charged with usage fees. Use at your own risk. You’ve been warned.

1. Jailbreak your iPhone 3G (or first gen iPhone running the 2.0 software). Install OpenSSH via Cydia. (OpenSSH gives you command line access to your device)
2. Create an ad-hoc network on your computer. On Macs, just click on the Wi-Fi icon in the menubar and select “Create Network.” On Windows, set up internet connection sharing.
3. Join the iPhone to this network via Wi-Fi as usual.
4. On the iPhone, under Settings->Wi-Fi, select the network you have joined to view connection details. Write down its IP address.
5. From the Mac’s Terminal, run the following command:
   ssh -ND 9999 root@IPHONE_IPADDR
   but replace IPHONE_IPADDR with the IP you wrote down in step 4. Login. The default root password is alpine; you should really login normally over SSH and change this.
   Windows users: the free SSH client Putty will allow you to accomplish this same step. Don’t install Cygwin+OpenSSH as some suggest, that’s massive overkill.
6. Configure your browser to use a SOCKS5 proxy server at localhost:9999.
7. Surf.

Again, this is against AT&T’s data usage policy. Use at your own risk!

- source: lifehacker.com