Check out this article I wrote on Delaware Web Designer to enable tethering on your iPhone.

Inclind purchased iPhone 3Gs phones for each employee last week, launching us into the future of handheld cellular devices. I was a little sour on the phone in the past, mainly due to cost, locked-in carrier agreement and proprietary platform. Now, with the AppStore and 3.0 Firmware, the iPhone is a solid contender in the mobile market with over 30 million units sold.Hopefully I will be writing regularly about the iPhone. I spend a lot of time with the device and testing out Apps.

The new 3.0 Firmware introduced a lot of new features that the community has been demanding since the iPhone first went on sale.

You can see most of the new features here:

http://www.apple.com/iphone/softwareupdate/

The one thing that stuck out to me as ‘missing’ when I was looking through the phone was the Tethering functionality. Tethering lets you use an external device such as a MacBook to use your phones data connection to access the internet. Previously, that page did not say AT&T was not supporting tethering, and you cannot find this option anywhere on the iPhone right now. Of course, with a jailbroken iPhone, you can access anything. That voids warranty though, so we don’t want to do that. But, there is a way to enable iPhone Tethering without jailbreaking the phone!

**Disclaimer: It is against AT&T TOS to use data tethering, so use at your own risk!**

On a Mac:

First, you need to have iTunes 8.2, an iPhone 3G or iPhone 3GS, and 10.5.x Leopard Operating System for iPhone Tethering to work.

Download the AT&T carrier settings file (thanks Gizmodo)
Connect your iPhone to your Mac via dock or USB cable
Copy the following text: defaults write com.apple.iTunes carrier-testing -bool TRUE
Open the Terminal app, and paste the text you just copied in Step 3
Sync your iPhone in iTunes, when it says Ok to Disconnect, hold the Option key and click Restore in iTunes
It will ask what file to restore. Select the ATT_US.ipcc file you downloaded in Step 1 and click Restore
Now you can go into your Settings on the iPhone and see that Internet Tethering is a new option!

If you are using Windows, the steps are slightly different. You can view the steps over at krillr.com.

Be careful! AT&T does not want people using iPhone Internet Tethering right now because they do not have a data plan for that, so if you go online don’t transfer a lot of data and garner attention.

Source: http://www.delawarewebdesigner.com/tech-stuff/enabling-data-tethering- on-the-iphone.htm