Alright well for some odd reason after months of troubleshoooooooooting, I think I fixed it. The difference between USB tethering (works) and Wi_Fi tethering (doesn't work) is WIFI!!!!!!!!!!! DUUUUHHHHH!
So I navigated on over to Wi-Fi settings, disabled the Wi-Fi sleep thing, as suggested by someone on a website that I have to track down again after Internet Explorer froze. God, if this works, well great, but all that work, turned out the answer was right there... haha I'm sorry this is just like a big relief, assuming this fix works, and so far- it is. Holding 3G longer than usual.
Anyway...... don't hit me, but what are kernels? And why would I choose to run one over the other?