grahamz over on Androidfurums has already done a proxy version of
tethering.
His is the first I've heard of. Personally, I have not even tried
anything like that yet but here is a link to grahamz's posts (and
the .apk and src)

http://androidforums.com/showthread.php?t=1449

Enjoy....

On Nov 1, 2:31 pm, Ed <[EMAIL PROTECTED]> wrote:
> Tethering the G1 as a modem for my laptop is one of the main things
> that I have been looking for. T-Mobile's CEO said "that while the
> company didn't encourage the practice, they wouldn't lock down the OS
> or update the software to break those applications."
>
> The article is here, and barely over a month 
> old:http://www.engadget.com/2008/09/23/t-mobiles-cto-on-g1-unlocking-and-...
>
> On Nov 1, 3:20 pm, "Michael Stella" <[EMAIL PROTECTED]> wrote:
>
> > Not that this is anything related to Android - it's T-Mobile that does the
> > locking.
>
> > On Nov 1, 2008 2:51 PM, "sgbirch" <[EMAIL PROTECTED]> wrote:
>
> > On Oct 31, 11:38 pm, "Amir Noble" <[EMAIL PROTECTED]> wrote: > Is it the
> > drive or just a matter o...
> > You would think that would be a natural use of the phone.  But
> > yesterday I was told by a T-Mobile sales guy that it would violate the
> > terms and conditions of the phone.  At least in the UK, you are only
> > permitted to access the internet via the phone itself.
>
> > I have no idea about the US situation since that appears to be a
> > different company.  It seems that a G1 bought in the UK cannot be used
> > with a USA T-Mobile SIMM.  A T-Mobile(UK) phone is locked to the UK
> > and cannot be used with a a T-Mobile(US) SIMM.  Grrrr.
>
> > You cannot begin to understand how disappointed I am with Android.
>
> > --~--~---------~--~----~------------~-------~--~----~ You received this
> > message because you are...

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