UPDATE 6/21/11: Comments have alerted me to the try experimental version 2.0.8. It does indeed fix the problem. Here’s the link and the QR code: Wireless Tether for Root Users 2.0.8-pre1 *** EXPERIMENTAL ***
UPDATE 12/09/11: CyanogenMod 7.1.0 doesn’t play nicely with Wireless Tether because the baked in tethering services autostart when activating on Wireless Tether. Go into Settings > Wireless & networks > Tethering & portable hotspot > Portable Wi-Fi hotspot settings > Configure Wi-Fi hotspot and change the security to “Open”. This should allow for Wireless tether 2.0.8 to work correctly.
After rooting my HTC Evo 4G, Wireless Tether for Root Users 2.0.7 worked flawlessly on the HTC Sense ROM.
Once I flashed my Evo to Cyanogen Mod 7.0.2, I re-installed Wireless Tether and it would freeze on the enabling screen after it had access to root. After pressing the Back button and trying again, it would enable, but then give an error message. Wireless Tether for Root Users does not work on CM7.
When I searched the Cyanogen Mod 7 forums, it was suggested to just use the stock tethering capabilities. This is the best solution. I hadn’t thought of this because the standard Sprint tethering doesn’t work unless you pay for it.
Wireless Tether for Root Users is enabled, but notifies “Tethering started with errors! Please check ‘Show Log’.”
Upon pressing Menu > Show Log you read:
Activating WiFi interface... failed
Setting ad-hoc mode... failed
Setting essid... failed
Setting channel... failed
Enabling NAT rules... done
Enabling IP forwarding... done
Tether now running... done
After some Googling and checking settings, it appears that Cyanogen Mod 7 doesn’t work with Wireless Tether for Root Users. Instead, the developers included a tether setting baked into CM7. From your homescreen, press Menu > Settings > Wireless & networks > Tethering & portable hotspot and enable “Portable Wi-Fi hotspot”. Works perfectly.
While this method doesn’t include data usage or the MAC address filtering like Wireless Tether, it does allow for WPA2 PSK security. You can also set your SSID (network name) under the settings.