If anybody feels they need to try the old method to get Wireless Tether to work, here it is:
1.) Uninstall any previous versions of Wireless Tether from your phone at Menu > Settings > Manage Applications > Wirless Tether > Uninstall
2.) Download this file to your PC:
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Note that the above link contains the newest version of tether at the time of this writing which is 2.0.5-pre8 which supports Access Point mode on Froyo.
3.) Unzip to reveal the Android.tether folder (already contains the .apk and the fw_bcm4329.bin file. Leave them alone).
4.) Plug in phone to PC in disk drive mode and USB debugging on. If using Windows, wait for the popup window and choose "View files and folders". If you're seeing the internal memory, close it, there will be a second window for the SD card contents.
4b.) If the above fails, go to Start > My Computer and under "Devices with removable storage", find your SD card there instead.
5.) Drag the unzipped Android.tether folder from your desktop onto the SD card being sure to drop the folder into an open area so it goes to the root of the card.
6.) Once that's done, drag down the notification bar on your phone and switch from disk drive to charge only.
7.) Disconnect phone. Use your preferred file manager app to navigate to the SD card > Android.tether folder. Open it and launch the .apk to install.
8.) Grant Wireless Tether superuser permissions and press the screen to start tethering. Go to laptop and open network list, refreshing if necessary until Android Tether shows up in the network list.
9.) Now that you're up and running, you can go into Tether's settings and change the SSID and enable security if desired. If all is running properly, it will then be shown as a Security Enabled Wireless Network, just like your home network (router) would display.
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EDIT (9/16/10):
There may be a need for yet another method for newer versions of wireless tether. It seems especially for versions 2.0.5-pre9 and newer. I'm pulling this info from another thread in an effort to collaborate it into one spot.
All credit to AF members jamor and Two_cents for hashing this out:
1.) Get the newest Wireless Tether version here:
http://code.google.com/p/android-wifi-tether/downloads/list
2.) Uninstall any version of Wireless Tether on your phone.
3.) Make a folder titled androidtether on the SD card (We used to call the folder android.tether, note the lack of a period using the newest method. If you already have this folder from earlier dealings, use a file manager and rename it to remove the period).
4.) Once the new version of tether and the original fw_bcm4329.bin file (this has never changed) is inside the androidtether folder, open the .apk to run the app. If you need the .bin file, get it here:
fw_bcm4329.bin
5.) I believe steps #8 and 9 from the above instructions would still apply at this point.
