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Root Wireless Tether issue: 3G going on and off

I had the same problem. Apparently, this is what happens for some people after you update to 2.2.

Here's the fix: Go to settings, open applications, go to manage applications and down to wireless tether. Click on "clear data," then uninstall. Next, dial *228 send and choose option 2 to do a roaming update. Finally, install the latest beta of wireless tether(I installed 2.0.5 pre 9). You'll have to install the .apk manually because it's not in the market. This worked for me. I'm using WEP and not getting any more drops.
 
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