Thanks all. I too got stuck the in the repeating "DENY / ACCESS" prompt from SuperUser on my rooted stock Android 4.1.1.
Once I installed Super SU from the Play Store, all is fine. Tested and can now tether my CyanogenMod HP Touchpad to my new GS3!
Update: It only works with encryption disabled though. If enabled, my Touchpad keeps going: "Connecting... Saved... Connecting... Saved... Connecting... Saved... ". It never actually connects.
No matter. I enabled
Access Control and that adds
some security. Prevents everyone in the office from easily connecting.