UPDATE: There’s a better/free app you can install called Android WiFi Tether, read up on How to Tether your Nexus one, Droid and other Android phones should be similar.
Here’s a simple way to tether your motorola Droid using a free app (and there’s a paid app too).
And of course, it seems that this tethering app is only supported for USB or bluetooth, I wish they were able to turn it into a WiFi router like a Palm Pre can. Oh well…
What you’ll need:
Tethering Software – [PDANet] Download (Full version costs $29, onetime)