So I was going thru the menus in FroYo and decided to try the USB Tethering option. Didn't expect it to work, but it did! No longer need pdanet now.
PdaNet for Android Purchase Agreement
Explain the free part of $23....
You seem to think that one specific app will protect you from the wrath of Verizon if they decide to go after tetherers.... This alleged "safety" you speak of does not exist. That's where you need a reality check.