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Turning the Droid into a hotspot?

I downloaded and have been reading the Android 2.2 user's guide. I wanted to get a better idea about Froyo. Anyway, it says that the phone can tether to one computer [was doing that under 2.1] and also become a hot spot. But when I follow their directions, this is not possible on my phone.

Read a little online and some are saying it is possible, while others are saying it is not.

What is the answer? Is there an app that I need to have?

Thanks for your help.

BTW: the posts on how to get flash helped out!
 
I avoided rooting for a time too until I realized Verizon would take forever to push out 2.2 (which they did), and that they would control aspects such as tethering (which they did). if you are rooted, you can wifi tether, using... well... Wifi Tether (as previously mentioned). Rooting and flashing Rom's really isn't as intimidating as it sounds either, just do a search on any forum and you'll be armed w/ easy instructions on what to do. BTW, I've never had an issue tethering.
 
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