[ShelbyTurbo]

I have this same issue, but only when I have HTC Sense turned off.

For whatever reason, you have to have HTC Sense running in order to do Internet Sharing.

I'm tagging this, as I like just the regular Windows Mobile today screen instead of HTC Sense, because it is faster.

WMP also doesn't choke on re indexing my music from my full 4GB SD card whenever I disconnect from my PC. I've found that powering down and then powering up is faster than waiting for the HTC music tab to do its thing. This is mostly the reason why I don't use HTC Sense. The 20 minute car ride into work sucks if the phone is re indexing my music for half of the ride.