The worst part about owning an android phone is to wait for updates from your hardware vendor (HTC in my case) to provide OS updates. I am still stuck with Eclair and eagerly awaiting froyo,while the N1 counterparts are eagerly awaiting gingerbread :-P.
Wifi tethering (using the phone as a wifi hotspot) is one of the key features of froyo. Since i don't have froyo, i have to go through a tedious process to setup wifi tethering in my eclair. So, i chose the easier option of USB tethering.
Before i even connected the USB cable, i browsed through the internet and found out there are various methods available for USB tethering. There were many tutorials on how to achieve this. I read all levels of tutorials from rooting the device to installing the SDK to installing a $30 app. Atlast i found a simple app, which could do the trick.
I connected the phone (running android 2.1) and the computer (running ubuntu 10.04 netbook remix) and selected "Enable mobile internet sharing" in the phone. Thats when the miracle happened. A small pop up notification appeared in the top corner saying "Connected to wired network auto usb0". I was surprised. I had just spent half an hour surfing through tutorials to make this work. All of a sudden out of nowhere it works out of the box on just connecting the cable. To ensure i just pinged my blog and it was working like a charm!
So its windows that requires all the crappy drivers and vendor software for USB tethering. In ubuntu it automatically established a LAN (PAN may be) and set the IP, gateways and DNS and works on the go without any manual effort (except for connecting the phone and computer of course ;-))
So for all who want to tether your phone's internet connection, please do not waste your time in reading tutorials and rooting your device. Just boot into linux and connect your phone :-)
P.S.: This post is through the tethered 3g connection :-D