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This method didn't work for me using the current Gingerbread update & Windows Vista. I get a message saying that I am not subscribed to hotspot service. My laptop shows that I am connected to a local network only.There is no need whatsoever to install third party software (like PDAnet) in order to USB tether with the Evo Shift, and therefore no need to run any risk that using such software might violate your user agreement with Sprint. Instead, just use the HTC Sync program that shipped with your phone--I'm using it to make this post right now.
It's pretty simple. If you haven't done so yet, install the HTCSync program on your computer. The setup file is on your phone, so just plug the phone into the computer via USB (make sure your screen on the phone is on and not locked) and you'll get an options screen (on the phone) asking you how you want to connect. Choose "Disk drive," click Done, and the drivers will install and you will be able to view the contents of the phone (or at least the SD card) as a removable disk under My Computer. Navigate to the HTC Sync folder, and copy the .exe file in there to your desktop (the name of that file seems to vary, and mine had a name that didn't match what the User Guide said, but it's the only file in that subfolder, so you can't miss it). Disconnect your phone (be sure to "eject" first in the task bar), and run the .exe file, installing HTC Sync on your computer.
The next time you plug your phone into the computer (once again, make sure your screen on your phone is on and unlocked), in the dialog box on the phone this time pick the "USB tethering" option (it may have been called "Internet sharing" in older versions of the software) and click Done. You will get Windows telling you it's installing more drivers (it also installed drivers when you previously connected it as a disk drive). You might get an error saying that some drivers didn't install, but no matter, you're connected! (At least in Windows 7, that is--the computer saw the internet connection automatically and instantly connected. You might need to run through the "Connect to..." routine in other OSs.)
And, it's just as easy as that. The huge, huge advantage to this approach is that you are using software that Sprint gave you with the phone, so there is simply no way that they can complain that you are improperly tethering the device. For reasons I cannot explain, they disable the built in Android USB tethering function, and allow wi-fi hotspot usage only if you pay the monthly fee, but the HTC Sync USB tethering option is fully operational and extremely easy to use.
Are you using HTCSync with Windows or MAC? If Windows, what operating system are you using? I'm using Vista & it's not working.Is HTCSync USB tethering still present and working on the Shift after the Gingerbread update?