It's kind of an on-going theme according to the dev's bug list. Go with the green iconed "Wireless Tether". No, that one doesn't support infrastruture mode for peripheral devices, but it'll get your laptop connected. If you are trying to get such devices connected, look for hacks specific to those devices for getting them on adhoc networks. I broke down and went this route to get my Nook Color connected. Hope this helps.
THANKS! I'm trying it now, so hopefully it doesn't crash my phone. I'm not sure why there was a strong emphasis on this roundabout way of getting wireless tether on my phone when we could've just downloaded it from the market like usual.
Also refreshing that there are still people are this thread too.