Use PDAnet. It worked just fine for my Mac Mini on Leopard.
Just install PDAnet and follow the instructions from the Cydia page. Basically, you use the airport on your Mac to set up a wireless local network, then join it using your iPhone. After that, 'it just works' to give you net access.
No wire required. All Wifi.



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I've had this occur to me several times on the Mac. It's so simple it's not intuitive.
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