The initial release of the G1 had many limitations which through a few updates have seriously improved the phone. One of the features that I missed on my Blackberry was tethering. At last there is a 3rd Party software which allows tethering without root access to your Android device. Check it out here at June Fabrics (PDA Technology Group).
June Fabrics also has software to support iPhones, Blackberry, Windows Mobile, and Palm devices.
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