For those that are running either the leaked Froyo for the Incredible or the EVO port, there is an update to Wireless Tether that now works with both and enables AP and WPA encryption. It is limited to 2 concurrent connections, but at least it works.
Install the following:
http://android-wifi-tether.googlecode.com/files/wireless_tether_2_0_5-pre7.apk
Install the following:
http://android-wifi-tether.googlecode.com/files/wireless_tether_2_0_5-pre7.apk