I know in the on-going Internet race to judgement Android has been anointed the White Knight role but Google's choice to give carriers/handset makers so much control over how Android gets into consumer hands is nothing to be proud of. We shouldn't be cheering on a solution that really isn't nearly as open as people suggest. Even a more legitimate Android phone like the Droid or N1 is crippled from doing wifi tethering unless you root/jailbreak it. Why? Because carriers didn't like it. If we're really looking for a 100% open mobile platform Android isn't really the solution. It's probably the best bet out there today but that should not stop us from pointing out why it's also restrictive.
http://androidcommunity.com/google-allowing-tethering-apps-f...
Do 3rd party markets apps like Wifi Tether from anda.pk work?
http://discuss.gdgt.com/htc/hero/support/tethering-with-the-...