I found a great link here that shows how to tether the Xoom over Bluetooth
Yesterday I just picked up a WIFI Xoom from AU for 65,100円 I was planning on just using my house WIFI and my phones data connection but started to run into problems right away.
Interesting note for those of you who are thinking about buying WIFI only tablets and tethering. Android is not able to connect to ADHOC wireless networks for some reason. The pocket WIFI devices use infrastructure mode so it is not a problem. The WIFI analyzer apps can see the adhoc networks but the built in WIFI application will not show them. One wonders if this is not by design ... don't be evil Google remember?
Apparently this bug is a few years old
On most phones when you are tethering it the connection is a adhoc connection since most phones do not support the wireless card to be in "Master Mode" (Same for most laptop wireless cards too). On my Xoom I could not even see the wireless tether connection from my phone.
After spending a long time trying to figure out how to share my laptop wired connection over wireless to my Xoom I found I was doomed from the start since my wireless card does not support "Master Mode"
What I ultimately ended up doing is just using bluetooth to tether my Xoom to my phone. It actually works pretty nicely I wonder if it will be any better or worse on my phones already feeble battery life.
Full review to follow when I have more time to get used to the Xoom ...