Image my happiness with i got the droid update and saw usb tethering available.
Then image my sadness-->rage that VendorX wants to charge to charge another 15 bucks to tether.
so following the instructions from here it is possible to tether via USB on linux. Evidently PDAnet works great but i dont use windows cept for powerpoint and i cant afford a mac.
so here's how to get it going if you dont want to click the link...plus i'll never remember that URL.
install proxoid on your droid
download & extract the android sdk to your linux system
turn on android usb debugging -->application-->development-->usb debugging
turn on proxoid
cg@c0:~$ cd android-sdk-linux_86/tools/
cg@c0:~/android-sdk-linux_86/tools$ sudo ./adb start-server
cg@c0t:~/android-sdk-linux_86/tools$ ./adb forward tcp:8080 tcp:8080
set your FireFox network settings to use localhost 8080 and you can surf. You should also be able to set your whole system to go thru the droid as well if you set the system wide network proxy.