Unduly Noted

Ok, so this is an obvious one but if you are reading this then you probably don’t know yet. You will need to download skype from the apple store (free). If you try running it and making a call without wifi you will get an error stating that you can’t make calls with skype over 3g.
Fix: Take your Jailbroken iphone (I use quickpwn to do it) and make sure the bigboss repository is installed via Cydia. Now search for VoIPover3G in Cydia. Install it. If it doesn’t tell you that you need to also install MobileSubstrate (which it should) go ahead and search for/install that as well. Reboot and test. This works well for me even on EDGE with a 2G iPhone. Of course you can also use Skype on your computer tethered through the iPhone with Pdanet.

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.

UPDATE: This app is very flakey for iphone os 3.0. Check out an alternative method here.

UPDATE:
The commenter from below brought it to my attention that the new Supreme prefs no longer has this option for weather icon. Give this a try and leave a comment to let me know if it works for your phone.
SSH into your iphone (cyberduck for mac os x is an easy way) and go to /var/mobile/Library/Preferences/
look for the file: com.ashman.WeatherIcon.plist
Delete it and replace with the attached from my working phone here.
Reboot and try pdanet.
If it works let me know. If you don’t even have the com.ashman.WeatherIcon.plist file let me know as well

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OLD METHOD BELOW
So you have jailbroken your iphone and installed/purchased pdanet. You have also installed a ton of other apps off of Cydia and can’t even remember anymore what you did. For some reason your darn connection keeps dropping every 5 - 10 - 15 minutes. Solution, download Supreme Preferences from Cydia (This will replace your current preferences/settings icons). Open it up and go to the Supreme Preferences at the bottom. Next go to Applications, next Weather Icon, next Refresh Every, and touch the Off. Apparently this goes out and syncs the weather icon with the appropriate one. Mine was set to 15 mins and sure enough every 15 pdanet would kick me. When I was having this problem the pdanet people wrote me and told me that something must be making a connection (and apparently that kills the pdanet connection). Anyway, shutting the weather icon refresh off fixes it.

EDIT: I’ve just started getting a bad connection again after doing nothing. Doing some serious testing to figure it out. It seems my AIM will work but webbrowsing won’t. Completely random as well, not like the above problem. If I close my browser it will sometimes work a little bit and then stop. At first I thoght it was DNS. It’s prob just my machine though and I need to iron it out and test with another machine. Will keep you posted. This just started last friday(4-17-09), let me know if it just started for you as well.

EDIT2: (4-22-09)
iTunes restore/jailbreak and only installing pdanet still does not work. It crashes after 5 min of use. Writing the developers to see whats up. Keep you posted.

EDIT3: (4-22-09)
Seems to be working now (not crashing). No idea what it was or why it was crashing. Running little snitch and I don’t see anything unusual. Let me know if it is crashing on you. I will keep you posted if it keeps working.

EDIT4:(4-23-09)
Worked great last night although I did not open too many tabs or try skype etc. Still crashing for anyone?

EDIT5: (5-5-09)
Forgot to mention that the developer emailed me back (rather quickly) and pretty much hinted that the crashing was an isolated problem on my phone. I’m guessing the dang thing was overheating. Anyway. He gave me a link to the beta version which I have been running and seems to work great.