A developer in Europe has found the first indication that iPads running iOS 4.2 will be able to tether. Another user in the UK also sees the "Internet Tethering" configuration option in the Cellular Data Settings pane, but the option is still unavailable on iPads running the 4.2 beta in the US. In all likelihood, the feature will support wired tethering, rather than mobile-to-mobile "hotspot" tethering Ã* la MyWi.
Acording to 9to5Mac, a dev in Sweden who was running iOS 4.2 beta 2 on the 3 Sverige network noticed an "Internet Tethering" section of the APN Settings pane under Settings: Cellular Data. The section asks for the APN, username and password separate from the cellular carrier data network access credentials.