PdaNet has recently updated to version 1.50. You can now tether using the USB cable instead of Wifi. This will help save battery on both the iPhone and the laptop you are using. Also, when connected via USB you can ssh or scp using the address “my.iPhone”. Finally, if your iPhone switches from 3G or EDGE to Wifi it will continue to share to the computer when using USB. These are all great, useful features and I recommend updating soon!

I finally got some time to go on vacation so I thought I would try out PdaNet. It’s an application that shares your cellular internet connection to your laptop via Wifi. Note that I’m on a PC running Windows XP. I’m not sure the process for Vista or Mac.

First, install the app from Cydia. Then change your wifi connection on your laptop to adhoc. To do this right click on your wireless connection in the task bar down by the clock, then select “View Available Wireless Connections”. Then on the left click “Change Advanced Settings”. Another window will open; select the “Wireless Networks” tab and then the “Advanced” button. Here you will change to adhoc connection. This will allow you to connect your iPhone’s wifi directly to your laptop without a router.

Now you will need to go to your iPhone’s Settings application and connect to your computer’s wifi called “NETSHARE”. Once this is connected all you need to do is open the PdaNet application and the connection should be established.

If you close the application you will lose your connection. There is a way around this by using the backrounder app. I’m using it and it’s working great!

Warning: This will drain your battery fast! I had it plugged into my laptop and it still had trouble keeping my battery above 20%. Since I was traveling in a RV I was also trying to use GPS every once and a while which drained the battery even faster. I also had my brightness turned all the way down. I’m sure running the wifi, EDGE and GPS at the same time is very power draining. 3G would be worse.

Tethering your iPhone may be against your contract with your carrier. Please check with them before using this application.