First, you'll need to gain root access to your phone. I followed this detailed tutorial provided by TheUnlockr. Then, choose a custom ROM to replace whatever your device was currently running (my G1 was running Android 1.6). For this process, TheUnlockr provides another exceptional tutorial, which links to a great selection of custom ROMs designed specifically to run on the G1. I went with Chromatic 4.1.1 (based on "Froyo," Android 2.2):
Depending on the custom ROM you've chosen, you might already have the android-wifi-tether app installed along with the ROM (it came with mine, but was missing on a ROM I installed on a different rooted phone). If not, head over to the Google Code page or grab it from the Android Market with this QR code:

Before going any further, please note the disclaimer/warning provided on the Google Code page:
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To get started, first select the app from your phone:
Then, just press the center of the screen to begin the tethering process:
Next, on your iPad, go to Settings -> Wi-Fi, Choose a Network... and select AndroidTether from the list of options:
From within the android-wifi-tether app on your phone, choose Menu -> Access Control:
Press Enable to allow devices to access your phone's data connection via wifi:
You'll get a Superuser Request that tells you a device is trying to connect to your phone. Press Allow:
You should see the name of your iPad, along with its MAC address and IP address. Check the box to enable access, and then press Apply:
Now, you're all tethered up:
You can now surf the Web with your iPad anywhere your phone can establish a data connection.
Learn more about this topic from Best Android Apps.
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