Barnacle Wifi Tether: Easiest Tethering for Motorola Droid
szym.net: Barnacle Wifi Tether
You need root access to create an ad-hoc wireless connection. With android-wifi-tether, you also needed a custom kernel that enabled netfilter (which you could also get by running a custom rom).
Barnacle is fairly new and does this without netfilter, somehow. That eliminates the need for a custom kernel, but not the need for root. I haven't tried barnacle out, but that would be a good option if you want to remain stock - just having root doesn't change anything much, and barnacle is just an app, so it will run just like stock.