Just made it using a 1st generation iPhone running firmware 2.x with EDGE connection after hours of investigation!
Use
3proxy installed from Cydia (Tinyproxy is no longer available.). Follow
the standard iPhone wireless tethering method except:
1. Create /usr/local/etc/3proxy.cfg containing the content in the attachment on the iPhone. (Windows users may use the
iPhoneBrowser to upload the file in the new folders created.)
2. In the MobileTerminal, run '3proxy' instead of 'socks'; 'SOCKS host is running.' will be displayed to confirm that the config file is in use.
3. It seems there is no need to open Safari after that.
This is made possible by the 3proxy supporting a proxy chain specified in the config file at the default location. Its 3rd line contains the IP and port specified in the /var/preferences/proxy.pac which may change in future.
There is an outdated solution at
HowardForums: Your Mobile Phone Community & Resource - Tethering iPhone with $5.99 T-Mobile Web – Works! and configuration detail at
Soft:3proxy:HowTo and in its 3proxy.cfg.sample file. If it is useful, please tell us here or write online elsewhere with reference to this solution here. Happy surfing!