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I may have done something wrong, but I think I know what the issue was, at least for me. I couldn't get the iphone on 1.1.3 to drop the wifi signal and go back to Edge. So the iphone was connected to my macbook pro, and my macbook pro was connected to my iphone. I could ping my iphone. But neither had internet access.

They may have changed the way the iphone functions in 1.1.3 to not drop the Wifi connection unless you get disconnected from it. Because if this is the case, then tethering wouldn't work at all because you can't keep the wifi connection on and the Edge connection to the internet.

Has anyone gotten tethering to work on 1.1.3?

UPDATE:

Found a different way to tether:

http://www.turanchox.com/?p=5

And I'm using leopard and iphone 1.1.3 jailbreaked with Ziphone. Works like a charm. Actually not that bad speed either considering. I don't really have much use for it, but I wanted to test it as a proof of concept.
 
Thanks, I will try it tonight...

What do you think AT&T thinks of this? I think its against there policy, but has anyone ever gotten "got"?
 
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