There is an app in the market that is about $10 but you don't need root to do it... Can't remember the name though...
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PDA net is only wired tether, not hotspot. It's also not "allowed" by most carriers. They'll turn a blind eye to it for occasional usage, but go wild on the thing and they can bill you per MB overage charges for tethering.
Wifi hotspot will KILL your battery life, so keep a charger handy.