I don't have access to the phone you have, but after you enable your WiFi tethering (referred to on my TMobile device as a WiFi Hotspot) you should have the ability to set an SSID, choose security options and create a password. If the edge is not finding your SSID try adding it manually. I have no trouble connecting to my MyTouch 4G with the WiFi feature turned on.
Unless this a feature Verizon has blocked or charges for it should work.
I also found this info http://forum.xda-developers.com/showthread.php?t=888991