Better iPhone Tethering

Now that slirp is available (check Cydia) for firmware 2.0+, the following article will be useful to anyone trying to tether:

http://www.nsgn.net/better_iphone_tethering/overview.htm

More reliable than even the short-lived NetShare, this method will also allow you to use applications that don't understand how to proxy their traffic --- this isn't a major issue on Linux/OSX, as wrapper applications (such as CorkScrew) are available, but on Windows it's a non-trivial problem.

Watch this post for a simpler, securer, more automatic method: it looks like we can get it down to one click on the iPhone side, and two clicks on the PC side, with nothing but scripts installed. The goal is no drivers, no configuration of other apps, no unsetting your proxy when you're done.