July 23, 2008 Although tethering, or using the phone as a modem for laptops, is a feature that is widely supported by almost all the 3G phones that have come out of market to date, AT&T have come out and said they will not support such a feature on the 3G iPhone. That oversight has spurred hackers into action and resulted in the circulation of a tutorial for doing what AT&T won’t. Remember that this might be against your use license agreement with AT&T and result in much unpleasantness – or they may do nothing at all.

If you still want to go ahead here’s the overview:

  • Jailbreak your iPhone 3G
  • Install 3Proxy and Terminal
  • Create an ad-hoc Wi-fi network using your laptop
  • Join the network with your iPhone
  • Find the iPhone's IP address
  • Open Terminal and run the proxy program
  • Open Safari on your iPhone and open a web page
  • Configure your browser to use the proxy

For the full instructions visit cre.ations.net.

Sources: UnwiredView.com and Ubergizmo