Step 6Set up the SOCKS Proxy
First, open System Preferences (/Applications/System Preferences.app) and open the Network panel. If the lock in the lower-left corner is closed, click on it and enter an administrator password when prompted. (The way the interface is set up is slightly different before Leopard, so you may have to look around a little if you have Tiger or earlier.) Make sure AirPort is selected on the left, then click 'Advanced...' in the lower-right corner. When the drawer comes out, select the Proxies tab, and make sure 'Configure Proxies:' is set to 'Manually'. In the box on the left side of the drawer, select the checkbox next to 'SOCKS Proxy', then enter 'localhost' and '8080' under 'SOCKS Proxy Server'. Press 'OK', and then 'Apply'. Your computer is now configured to access the internet using your iPhone's data connection! You can use Safari and most other applications; however, Firefox needs additional configuration. Open Firefox, click 'Preferences...' under the Firefox menu, then go to 'Advanced', and then 'Network', and click 'Settings...'. In the drawer that opens, select 'Manual proxy configuration:', and enter 'localhost' and '8080' in the fields for 'SOCKS Host:'. Click OK and close the preferences window, and you should be able to use Firefox as well. A few other programs, although not many, require configuration similar to that of Firefox for proxies; if the internet doesn't work on a certain application, check the preferences and change the same way as with Firefox. (The proxy preferences may not be in exactly the same place, but they should be under 'Network' or something similar, usually not difficult to find.)
When you are done, you have to put settings back to normal, or your computer won't access the internet in a normal enironment. Simply uncheck 'SOCKS Proxy' in the Settings app, click 'OK' and 'Apply', and you're good to go! If you set up Firefox (or other programs that require separate proxy configuration) as well, just select 'No Proxy' in the proxy settings drawer.
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