The Android WiFi Tether app does work with temp root.  Unfortunately right now infrastructure mode does not work.  Here’s what you need to do.
1.)  Use version 3.1 Beta 7
2.)  Change the setup method to WEXT (ad-hoc).  Use the “Default” device profile or any other profile that will let you use this setup method
3.)  Do not use WiFi-Encryption – For now this doe not work. You must use Access Control if you want to restrict access.
4.)  Enable “MSS clamping” and “Routing fix”
5.)  Tether away.