yes you can do this, i think you need to install schaps advanced config. When you open internet sharing and under pc connection (how it shares your phones data connection with your pc) there are 2 options, USB and Bluetooth. In schaps advanced config (google for it) under the data connections category theres a field called private interface for internet sharing. Change that from bluetooth to wlan and you'll be able to share your data connection via wifi (basicly turning your device into a wifi hotspot)
I think there are a few more details to do this and they are all explained over at xda-devs
Hey - thanks for your help. You got me in the right direction. I think the Private Interface for Internet Sharing is just a name, like you name your access point at home. But at least you got me pointed. I searched on XDA before i posted here but maybe I'm searching in the wrong forums. Anyway, thanks again.