THANKS!! Saving me some time. Is there a kernel that will work with the Version 7 wifi tether.
Use this....wireless_tether_2_0_5-pre6.apk - android-wifi-tether - Wireless Tether for Root Users 2.0.5-pre6 *** EXPERIMENTAL ** - Project Hosting on Google Code
Version 7 is said not to work with that kernal
Your step 2 is for people who are running custom ROMs and want to return to rooted stock everything: radio, wimax, OS, kernel, etc. and for redundancy, it also includes the engineering bootloader (which you need in order to run it, so kinda pointless) and a custom recovery image (Amon RA). Step 3 is entirely optional. Alternatively, instead of flashing a full custom ROM, you can just flash a custom kernel, which gets you all the goodies like wifi tethering, 50+ FPS, 5-pt touch, touch/slide sensitivity, CPU throttling, etc.