So 2.2 users,is the tethering or the hot spot that came with the system update,free?
Nope. Pay per-month. USB only, too. Only way you'll ever see WiFi tethering on the Droid 1 is by rooting, and then it's free.
Only other option other than rooting is to use an app from the market like Easy Tether, Proxoid, or PDANet. The first and last offer 2 week free trials, then block secure server access. Easy Tether is $11 to purchace, last I knew, and PDA Net is $20 or $30, I forget which. Proxoid is free but requires setting up proxy settings in all your internet applications. All of them require drivers and a small application running on the computer you're trying to tether, but these are provided by the developer.
Hope this helps.