Last night Apple released its new IOS 4.3 which includes several enhancements including Wireless Hotspot. Until now you could not surf the Internet on you IPAD using your IPhone for data. With IOS 4.3 and IPhone 3gs you can pair using Bluetooth with Wireless Hotspot turned on and Surf! Of course if you have the IPhone 4 your can attach using Wi-Fi or Bluetooth or USB so that has one advantage over the Iphone 3gs. IPhone 3gs also supports USB tethering but the IPAD does not have USB so that is reserved for Laptops now.
The one thing you must also do for this to work (a Gotcha) is to upgrade the IPAD to IOS 4.3 also.
There are a few more features that make sense to download this upgrade too like Screen Lock switch and Faster surfing. See details at https://www.apple.com/ios/
Thanks Apple and AT&T for letting Iphone users with Ipad share the internet or should I say what took you so long?
Micro Doctor Inc.