Droid 1 has been deemed 'incapable' physically of Wifi tether. I know from personal experience that it *IS* possible if you're rooted. Other than that, you've got no chance of accomplishing that. Please note that I rooted and immediately had issues with increased freezes, force closes, etc. and this was on multiple builds. In all honesty after playing with root for about 1/2 a month and having a droid that was frozen so badly I had to battery pull while on vacation and NOT at an opportune time, I immediately unrooted.
I played with the tethering for about 1.5 hrs while rooted w/ my laptop (3G wifi tether). Honestly I've never EVER experienced a connection that was SO slow that wasn't attributed to connectivity issues (I didn't have any w/ my computer/phone) In essence it sounds like an awesome feature, but is honestly the most annoying freaking thing to me to have to wait for 2 minutes for a site to load.
If you connect your droid device to your laptop directly via the included cable, you can do that with stock Droid. Please note that even though the function is on your device and they're allowing you to do this, that does NOT mean that you are able to have unlimited internet for tethering purposes, and please also be aware that this may NOT be covered by your cell plan (aka you might have to pay out of pocket for all those little kb/mb's that you use up).
Finally, this is the first phone I've LOVED. That being said, I HATE its battery life. If you think yours is at all the slightest bit crappy, just WAIT until you start tethering!
Ps- Rooting sections is greater than half of the boards... If you can't find it after actually looking through the threads, let me know and I can provide a direct link.
