A couple of weeks ago when beta 2 of iOS 4.2 for iPad launched, there were reports of the iPad including tethering preferences for iPad 3G models.
When photos of the tethering option were found, this immediately started speculation that the iPad 3G would be receiving iPhone-like tethering.
With the recent release of iOS 4.2 beta 3 however, it seems that Apple has removed the tethering settings. As the screenshot below shows, tethering preferences are no longer present.
At this time, it is unknown whether Apple is looking to cut the tethering feature entirely or if the reveal of tethering in iOS 4.2 beta 2 was a coding mistake.
Hopefully by the time iOS 4.2 is available in November, tethering will be a standard feature where iPhone users can use their device as the modem!
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