I used tether on my BB storm and it worked great...no probs from VZW either. It worked so well that I stopped my verizon data connection to my Dell 6000 ($60 per month) and used the one time $29 fee tether. Great for everything except movies took a while.
So the $29 tethering fee is one time? I assumed it was monthly.
I use my droid to tether and it is my only internet connection, cant get DSL or Cable. And I also play xbox live,MW2, without too much lag. It will occasionly lag a little but I'd say 95% of the time its lag free. My pings usually run around 150ms and its defintely playable. And no it doesnt use much bandwidth, about 25mb an hour with voice. Honestly it isnt bad at all so anyone thinking about possibly using it to game with should try it out if you have no other option.
But I got to say that it also depends on where you live. If you live in the city, which you usually have other ISP options, it seems the bandwith is a little slow. I assume because there is more users on the towers. But if you live out in the country, like me , then give it a try. I constantly pull 1 mb download and around .45 mb upload at my home when I do a speedtest.
Trust me I debated it for months whether or not to get it but now im very happy I did. I figured I was already paying $50/month for my old cell phone and $15/month for dial up, so its really not that big of a difference considering you get a connection thats about 20 times faster.