For weeks, "PayUpSucker" and now "PayUpPunk" have been available on the iTunes App Store.
The programs allows an iPhone to share its Internet connection via a SOCKS proxy:
itunes.apple.com/app/payuppunk/id336009164
It costs just $0.99. No need to jailbreak.
I have tested this under Windows 7 and Mac OS X. It should work the same under Windows Vista. I've never made an Ad-hoc connection under Windows XP, so your mileage may vary with that.
Method to tether your internet connection:
- Create an Ad-hoc network with Vista/Win7/Mac OS X (tested without a password and with WEP).
- Set your computer to use a static IP. I went with 10.0.0.5/255.0.0.0.
- Join your iPhone to the Ad-hoc network.
- Set you iPhone to have a static IP. I went with 10.0.0.1/255.0.0.0.
- Set Firefox to use SOCKS for DNS (about :config, search for "dns").
- Set Proxy to the iPhone's IP, port 8888.
- Start up "PayUpPunk", tap IOU, and enter Its my data (no punctuation).
Enjoy Internet tethering!