Just thought I would share this. Didn't see any quick guides on tethering (ie. using it as a SOCKS proxy to EDGE or 3G) to the iPhone in BT. So here it goes.

Very simple process.....

Backtrack/iPhone tethering guide.

If you are using an AT&T data plan they have a little line in their contract that states that if you go over like 5gb/month or something you are charged additional fees. So watch out, because their definition of "unlimited" obviously has some sort different meaning. Just an FYI if you choose to over use. If you're on a different carrier who knows.

a)Jailbroken iPhone with cydia
b)3proxy (available from cydia repos) & Mobile terminal installed on iPhone.
c)Backtrack installed with wifi chipset with ad-hoc capabilities.

This was tested with Lenovo T60P w/iwl3945, BT3 & iPhone 3g 16gb Black. Also initial test was using the EDGE net. (no 3g in my area.)

1) In BT run...
bt~#ifconfig wlan0 down (change wlan0 to your wifi device if needed)
bt~#iwconfig wlan0 mode ad-hoc
bt~#iwconfig wlan0 essid "insertname"
bt~#iwconfig wlan0 channel 10 (you can choose any chan)
bt~#ifconfg wlan0 up
(please note for this test I skipped the encryption setting, please set the net with encryption in a working setup.)

2) On the iPhone ...
Turn on wifi, connect to the ad-hoc net you just created.
go to the settings and make a note of the DHCP IP.. (should be 169.254.*.* or something)
Open your iPhone mobile terminal and type "socks" and enter (no quotes) You wont see anything, just hit the home button it will run in the background.

3) In BT
bt~#ifconfig wlan0 169.254.*.* (just make the laptop in the same range, i just did on number off)
bt~#ping (the iphone ip) to test
bt~#nmap (the iphone ip) to test if you want... at this point the only port open should be 1080

4)In BT open firefox
go to your network prefs and set it to use a SOCKS proxy (iphone ip:1080) everything else should be blank or 0.
ok, apply. Try google or something....

If you get a page it worked. If not something sucks. !google

If anyone has anything I missed or typo'd feel free to smack me with a large trout.