From Reg Hardware:

Apple released its iPhone Software 3.1 beta 2 on Tuesday, and today, the web is alive with reports that the release has disabled a hack that allowed fanbois to use the iPhone 3G and 3GS as wireless broadband modems for laptops and PCs.

This capability - known as tethering - was touted as one of the benefits of 3.0 when Apple sang its praises at its Worldwide Developers Conference last month. Unfortunately, Apple also announced at that time that the iPhone's exclusive US carrier, AT&T, wouldn't support tethering until it was damn well good and ready.

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