A few other users on other sites are having the same problem. Looks like I will be keeping my DX for awhile longer. Hopefully the Bionic will be able to tether.
Yes - the hotspot app on the TB works fine -- Makes the xoom - ZOOM! The HotSpot app on the TB very nice/full featured compared to the JB ones that I have tried on my DX.
We should see root on the TB before long and can go back to using JB wifi apps before the May time frame that the hotspot becomes a fee service.
I have a paid for hot spot setup on my Droid X, so will that work to tether the xoom to to get WiFi. I'm planning to get the WiFi only xoom after March 27th when it releases and want to know before I invest in the WiFi only version.