Unduly Noted

EDIT:
Jut released a version compatible with 3.0 Installed and works great. Don’t even need helper app. Just create ad hoc and connect to it with iphone. Then run iphonemodem3 (addition) on you iphone. less flakey than pdanet even.

OLD EDIT:
As of 3.0 this app would not launch for me - use my guide here for an alternative

From my experience the helper app is flakey. Doesn’t always work or create an adhoc network. Easy solution is to create an adhoc network on your own and name it whatever you like (ex: mynetwork). Now on the iphone connect to that network. Next click the arrow next to the name of the network (on the iPhone). It will take you to a page where it lists your IP address. By default it will be on DHCP. Wait until the IP address self populates. Once it does hit the static button (instead of DHCP) and those numbers should now stick. Now back on your mac go ahead and configure  your socks (port 1080) http and https (port 3128) with the IP from the phone (If using firefox you have to do it in its own preferences under advanced -> Network -> Settings. The same for Windows Firefox). That should do it. Open the iPhonemodem 2 app on the iPhone and it should connect. Now every time you have to connect via iPhone make sure you create a network with the exact same name (ex: mynetwork). The iPhone will automatically assign that static IP to it. If you want to connect to another wireless access point make sure to uncheck the boxes from the earlier steps here. Don’t worry, when you want to go back just check them again, mac os x remembers your config. This also works for windows of course, just make the changes in your network config.

Bonus: iPhoneModem 2 can serve out interent to several computers at once as long as you configre them like above and stay away from the helper app.

ALSO: If you want to tether your iPhone to play games like word of warcraft (WoW) or FFXII or any other MMORPG with this app it is doable. Just download this program called Proxifier (mac and windows). Start up the app and go to “Options” ->”Name Resolution” and check it. Also “Options”->”Proxy Settings” and fill it in with the settings above. I have had great luck with this. Ventrillo even works while in a 10 man raid with an EDGE connection. Granted you get latency of around 600ms but as long as you are not a healer and you don’t have a constant stream of noob chatter, this is doable. Just make sure this app is running before any other apps.