UPDATE: See my step-by-step HOWTO guide on how to install USB/WiFi/Bluetooth tethering on your Nexus One over at my new blog Nexus One Hacks!
Probably as soon as “wifi” tethering is available for the Nexus One, I might start hacking my own Nexus One phone (sorta like I did with my Palm Pre) but for those of you who don’t want to wait, you can install CyanogenMod for the Nexus One, which will enable USB 3G tethering. I find that my Sprint Palm Pre is much faster for mobile internet so I might stick with it for now but it’s always good to have an extra smartphone that can be tethered in case my Pre’s battery runs out.
BoingBoing’s Cory Doctorow has a good DIY guide on how to do this, using CyanogenMod’s guide.
This hack will work on HTC Dream of Magic also as CyanogenMod isn’t just a tethering software, it’s a whole firmware replacement (aftermarket Android) for your Android phone.
For those of you who want to enable WiFi tethering, you can try this guide here. I guess there exists Android WiFi Tether app, watch this cool video of it in action:
video://www.youtube.com/watch?v=xpUaUUGDllg
I tend to like the WiFi tether version better since it only requires you to unlock to bootloader and root the phone, whereas the Cyanogen Mod is a total OS replacement.
CyanogenMod is a customized, aftermarket firmware distribution for the HTC Dream and Magic cell phones, and the Google Nexus One. (NOT The Hero, Tattoo, Cliq, Droid, Galaxy, or anything else on the unsupported phones page.)
Based on the open-source Android operating system, CyanogenMod is designed to increase performance and reliability over Android-based ROMs released by vendors and carriers such as Google, T-Mobile, or HTC. CyanogenMod also offers features not found in these releases, such as FLAC Lossless Audio, multi-touch support, the ability to store applications on the microSD card, and support for tethering.
