Unduly Noted

So as of today pdanet and iphonemodem by addition still totally suck under iphone OS 3.0 (for both my 2G and 3G)
Of course like usual there is no email support for additions iphone modem (what’s new) and pdanet (une fabrics) says disconnects are reported by only a few in 3.0.
My solution is to go back to the roots, the beginning.

Enter the original iPhoneModem by zsrelay. This uses a modified version of srelay which was the old dirty original hack for tethering in 1.0.

(Jailbreak your device of course)

Step one is to remove pdanet or iphonemodem(addition) and even jay’s socks srelay if you have it.
In cydia search for zsrelay and install with all dependencies.
Reboot the iphone.

Create a wireless network in whatever (windows, ubuntu, mac os x)
i won’t explain this for each system but give that connection an ip of 192.168.1.2
Make the subnet 255.255.255.0 and router/gateway 192.168.1.1
You can dill in DNS with open DNS if you like - 208.67.222.222 and 208.67.220.220

Now back to the phone.
join the adhoc network you just setup.
click the arrow to the right of the network after joining and then click static.
Assign the following:
IP: 192.168.1.1
Subnet: 255.255.255.0
And again DNS with the above if you like.

Now go to your main setting page on the iphone and scroll down. You will see iphonemodem. Click it.
turn on all options (drains battery so i would recommend shutting off when not hooked to the wall or using)
Click advanced and turn on icon.
Exit out and make sure you can load a webpage still with safari on the iphone.

Go back to you computer and the easiest thing to do is download and install proxifier. (costs some dough but 30 day trial)
This will give you a systemwide socks so that any game or protocol will tunnel through it. And yes World of Warcraft or anything else.
After opening proxifier go to options menu and choose proxy options.
click add and type in 192.168.1.1 and port 1080.
Check the Socks v5 box and hit ok.
Now make sure in the proxy options that the check box next to 192.168.1.1 is checked and hit ok.
Lastly go to Options in proxifier and choose name resolution. set it to enable and hit ok.

Relaunch anything that uses the internet and you should be online. You always have to leave proxifier open when using this method. And typically launch it before anything else.

If you dont want to shell out money for proxifier you can individually set your apps to proxy, but this is limited to the app only and isn’t system wide.
In mac os x go to you airport settings (advanced) and click the proxies tab. Check socks proxy and set it to 192.168.1.1 and port 1080. Hit ok.
In firefox you have to set it in the actual preferences.

This works fairly well and at times seems snappier than pdanet.
Let me know how it works for you or if you have any questions.