UPDATE : PDANet sneaked in an update ( v1.40) which restricts the functionality unless you fork out $29.99!
Temporary Solution :

Download PDANet 1.33
SSH that into your phone and drop pdanet1.33.deb into /var/root/
Using MobileTerminal (get if off Cydia if you have to) type in “su,” then type in your password, which is “alpine” by default. Then type in the command dpkg -i /var/root/pdanet1.33.deb. Wait for it to get done.
Then restart/respring your iPhone

I have been pretty busy lately – final semester of Masters and you can imagine! I finally took …

Test Environment :
iPhoneModem (Mac and iPhone applications – Both are required)
Macbook Pro , OS X Leopard 10.5.5
iPhone 2.1 (iPhone is now really Usable!)
Using Safari on my MBP as other apps need hacks to enable them.
ATT 3G / EDGE network (In Train (NJ-NYC) – Slight fluctuations, iPhoneModem very stable!)

We all know that ATT caps iPhone’s data capabilities at 1.4 Mbps but that is just enough for using it as a modem though all I can use is Safari for now. I am sure other applications can be used by configuring proxies …