Ok, so i didn't see anyone having posted this before so here it is.
This isn't true WiFi tethering, as you still need at least ONE windows 7 laptop to create the hot spot. (This works with macs, but only if they are running win 7 in bootcamp)
The basic premise is, you use pdanet (or another tethering option) and then using a program called Connectify for windows 7, you create a wifi hotspot using your laptop's WiFi card which is using the pdanet tether as its connection.

First steps:
Download pdanet from the Market on your phone, and the desktop portion from this website: PdaNet -- USB Tether/Bluetooth DUN for Android
Follow the instructions for install and having the right phone settings
Now download Connectify from here: Connectify - Turn your Windows 7 laptop into a Wi-Fi Hotspot.

Next Steps:
Connect your phone to your laptop, and start the PDAnet app on the phone. Open PDAnet on your laptop, and click "connect"
Now your computer is tethered through your laptop.

Now run Connectify. It's easiest to hit the Easy Set-Up Wizard.
Type in a network name for your wireless network. Then select the type of connection to use, either with or without a password. Now it will ask you to select the connection. This is the connection your WiFi card will use to broadcast its signal with. Select "PDANET Modem"
Click Finish

You now have a wireless hot spot for other devices to using your Incredible. Not all devices can see it. Any computer or iphone OS or android device can see it, but I can't seem to get it to work for PS3's, zune's and other devices. You can use Connectify with any other connection as well, like a hard Ethernet connection in a hotel room. Hope this is useful for people! Ask questions if you are confused.