It's funny you guys bitch and bitch about apple locking down there phones. When was the last problem like this with iOS devices. I know jailbroken iphones/ipods with ssh enabled an the default alpine pass at one time got caught in a worm that would simply rickroll your iphone basicly. Open platform means you are hoping the people who made your software are nice. What the last ios problem was a developer hacking in a script to let your volume buttons take pictures. ;) Alot better then a 3000 dollar cellphone bill

Jailbreak the iphone
add
http://cydia.xsellize.com/ to cydia
Install "MyWi" in the Xapps group
1. Turn on
2. Make network
3. Open/WEP encrypted wifi network which shares your internet. It's perfect. Not only can you tether to one device you can tether to anyone around you with the key (or keep the network open) great for roadtrips if someone has an ipod touch or a netbook.

The bliping and blaping you get from the iphone can be solved by turning on 3G for the most part. If I leave my phone on edge it beeps and blips everything near by but a SB settings toggle to use 3G does decrease the battery life but stops this blip blap.

The only issue with that is after like 10km or so away from the tower it will actually REJECT your data packets. Even if you have like a -90 or -80 signal. GSM won't allow you to have data. CDMA on the other hand I believe will. Keep that in mind if you plan on using a large antenna/booster.