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I wireless tether all the time to my wifes laptop when we are out and about. the best part is to tether to my buddies iphone when he has now service and i still have 3g and full bars. i just start wireless tether set the other device on discover and it picks it up no prob.
Not that I know of. I believe most, if not all Android devices, are incapable of connecting to an ad hoc network, which is what Wireless Tether for Root produces.
Now, if you were using the actual pay application from Verizon, I believe you would produce a normal wifi network capable of being connected to by other Android devices.