Q: After I updated to iPhone OS 3.1.2, tethering has stopped working. Can I make it work again? A: Yes and it is simple as well. However a jailbreak and unlock is needed Q: How? A: Basically in a few simple steps using the BlackRa1n tool. Disclaimer: This post is NOT intended to encourage you to unlock phones. All recommendations are carefully written. However, we do not feel responsible for any damage caused by these recommendations1. Run BlackRa1n from a Mac or PC to Jailbreak your iPhone 3G or 3GS2. 
nm.at and install the IPCC file.In the case of AT&T, that would be in U.S.A > AT&T.
4. In "Settings", flip the "Internet Tethering" option to "On" and done!

Run the BlackRa1n app from your iPhone to unlock your iPhone and reenable the IPCC hack3.Navigate to http://help.be
nm.at and install the IPCC file.In the case of AT&T, that would be in U.S.A > AT&T.4. In "Settings", flip the "Internet Tethering" option to "On" and done!
You are back in business with your.For details, please refer to this excellent post of Mobile Crunch
Note: If you run into problems with WiFi, Youtube or GPS, please try to reset the network settings.
Goto Settings => General => Reset then tap on “Reset Network Settings”. Once that’s complete, reboot your iPhone.
Note: If you run into problems with WiFi, Youtube or GPS, please try to reset the network settings.
Goto Settings => General => Reset then tap on “Reset Network Settings”. Once that’s complete, reboot your iPhone.
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