Select 'Connect to a network', then 'Set up a connection or network'.Right click on the network tray icon at the bottom of the screen.Tap on it and your computer should go online. Now on your iPhone go to Settings->WiFi and 'iPhoneNet' should show up in the list.Select Create Network, give it a name such as 'iPhoneNet'.Click on the Airport icon at the top of the screen.Now on your iPhone go to Settings->WiFi and 'iPhoneNet' should show up in the list unless your computer is already connected to a router.Check 'This is a computer-to-computer (ad-hoc) network and select 'OK' to close the settings.Give a name to your network in the SSID box such as 'iPhoneNet'.Select Wireless Networks tab, under Preferred networks, click Add.Go to Control Panel->Network Connections, then right click on Wireless Network Connection and select Properties from the menu.Without it all computers/iPhones nearby could potentially connect to your computer AND your iPhone!

*In each of the following instructions WEP network key is optional but strongly recommended.

How do I create an ad-hoc network on my computer? Otherwise WiFi connection has failed and you should scroll down and read the trouble-shooting section below.

On the iPhone launch PdaNet and if the above WiFi connection is truly successful, you should see a screen with number of bytes transferred.

On the iPhone go to Settings->WiFi and you should see the ad-hoc network name of your computer, tap on it to connect.

On the computer create an ad-hoc (aka peer-to-peer) WiFi network and connect to it.Launch PdaNet and make sure WiFi router mode is enabled.How do I setup PdaNet connection over WiFi?

Pda net wifi