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HTC Desire is a great phone. One of my favorite features is the Internet access via USB tethering. Starting with Android 2.1, Eclair, USB tethering is a pretty simple process.
In order to to tether or share mobile internet connection with your computer or laptop on Android 2.1 phone on Windows, all you need to do is to install the HTC Sync software which is already available inside your micro SD card. If not, you can easily download the latest version of HTC Sync from here.
Once HTC Sync software is installed, you may connect your HTC Desire via the USB port, and select “Internet Sharing” option from inside your “Wireless & Networks” setting. With that, you are ready to surf your favorite websites and be connected to the net. 
Thanks very much for this , works perfectly and much less confusing than the stuff that you get on the app market.
[...] I've said it before, but: 2.1 already works as a 3G dongle (i.e, while connected via USB) out of the box. You just need to install the syncing software. Assuming you have Windows 7: http://www.kuanhoong.com/2010/06/02/…ith-windows-7/ [...]