PdaNet -- Use your iPhone as a Wireless Router for your PC/Mac

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PdaNet for PalmOS PdaNet for Windows Mobile PdaNet for iPhone

has been one of the most popular software for Windows Mobile phones and Palm OS phones. It is now ported to the iPhone! The latest version turns your iPhone into a true WiFi router for your computer (MAC or PC), and allows your laptop to go online wirelessly through the 3G network on the iPhone.

While there has been quite a few other third party software (iPhoneModem, NetShare etc. and also the built-in OpenSSH) that tether your iPhone through a junky SOCKS proxy solution. PdaNet, on the other hand, is miles ahead! This version is called "PdaNet WiFi Router", it literally is. All you need to do is simply to create an ad-hoc WiFi network on the computer and connect your iPhone to it (instructions). Your computer then goes online automatically. There is no need to specify IP (or any other) settings on either end.

Full list of PdaNet benefits:

You will get FULL Internet access on the computer! (Instead of only applications that support Socks proxy.) In technical terms, all applications make direct TCP/IP connections to the server. Since there is no proxy involved, that also means less problems and less delays.
VPN connections are supported on the computer.
You don't need to configure anything on the computer end whenever you connect PdaNet. No proxy settings, no extra software installation, no messing with static IP assignment, no switching settings back and forth when going back to your home's WiFi router.
Yes it will connect at 3G speed if your phone has the coverage.Feedback from our users shows pretty fast speed even for the 2G version.
Supports PC, MAC, Linux or anything (include other PDA/phones) that connects to a WiFi router.
PdaNet runs in the background so you can still use other iPhone features when PdaNet is connected. But when you are done with them, go back to PdaNet to prevent the phone from entering idle and drops your connection.
Version 1.3 has a built-in "insomnia" feature so you can turn off the phone when PdaNet is in the foreground and it won't drop your active connection. This will conserve battery.
It is recommended that you charge the phone at the same time while using PdaNet because both WiFi and 3G will be put on full speed, both consume a lot of juice.
Check out other users' feedbacks after using PdaNet or post a review of your own.

Installation - version 1.40 ( Update History )

Apple's App Store has not accepted PdaNet due to understandable reason. You will need to jailbreak your iPhone and install it through Cydia. To Jailbreak, please follow this Complete Setup Instructions from the iPhone blog. Once it is done, simply launch Cydia, go to Search and enter "PdaNet".

*A free version will be provided after 14 days trial expired. To register the full version, make sure PdaNet is connected and go to http://my.iPhone on the computer end.