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June Fabrics has the PdaNEt Android app that will allow you to tether your Motorola Droid phone without any device hacking and it is easy to accomplish for any user. As mentioned in the previous paragraph tethering your Motorola Droid by gaining root access is a risky proposition and is not suitable for all users. If you are looking for an easier and less risky way of tethering your Motorola Droid then we've got a solution for you.
• Download and install the PdaNet application for Windows or Mac on your computer.
• Connect your phone to your computer via the USB cable.
• Enable USB debugging mode on your Motorola Droid phone.
• Launch the PdaNet app on your Motorola Droid and tap to turn on the PdaNet connection (remember that you need to be connected via USB to your computer to enable this).
• The PdaNet application will request you to allow automatic installation of the USB driver for your phone, click to agree and continue with the installation.
• Now on the computer, click connect on the PdaNet application and you should be ready to browse the internet via your Motorola Droid's data connection.

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This video should give a more hands-on overview about the process of how to tether your Motorola Droid with PdaNet and how to go about connecting your computer to the Internet.