So it looks like SpiderMatt and I would be out of luck on tethering according to
this article. Motorola claims that the Droid is not capable of acting as a hotspot due to hardware. Regardless of whether that's true, it won't be in 2.2 for the original Droid. I suppose if it's possible some wiley hacker will fix that. I'm glad I didn't bank on it.
Edit: Scratch that. It looks like some wiley hacker already has.