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My first question would be the same as sherongb... what tethering app is your friend using?
Some apps use Ad-Hoc mode, and I have not been able to get my Stratosphere to see any Ad-Hoc networks... Perhaps he could try FoxFi, it uses Infrastructure mode and allows for security, DHCP, MAC filtering, etc. pretty nice app for rooted phones actually.
Guess I haven't had any problems, just activated it, set a WPA2 password and it just works... don't use it a lot but when I do it just works and I have used it for 20-30 minutes at a time with no problems.Have not rooted my phone and have tried FoxFi. It will work for 2 or 3 minutes then, although it still shows it's connected, it doesn't work. Not sure if I am missing something but am looking for any tips you can share for that program.