cisco this is not to insult your intelligence ima do a run down for any one who read this.
1) (after you done the steps here:
App that roots/OCs/multi-touches and tethers for $5) click on this link from your droid:
wireless_tether_2_0-pre3_eclair.apk - android-wifi-tether - Wireless Tether for Root Users 2.0-pre3 *** FOR SUPPORTED ANDROID 2.x DEVICES ONLY *** >>> EXPERIMENTAL <<< - Project Hosting on Google Code
it will download
2) after its done click and say replace
3) go into app, click allow
4) go into set up and change ssid (make it ur name or something)
5) on your lap top go into control panel and view network
6) find the ssid you made
7) because it will consider it unsecured you are going to have to click on it (on ur laptop) and allow. u will know it works when ur phone vibrate
8) go into diagnostics and repair and repain the setting. u should get a yellow security dialogue box, accept.
I just did this on 2 diff lap tops one is an old 2006 toshiba satellite running windows xp, and the other is a new toshiba satellite running windows 7. Its the same for both