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I may not be correct on this, but as far as I understand it Mobile IP Only vs. Mobile IP Preferred doesn't really have much to do if you are allowed to tether.
On CDMA 2000 you have the option of a Simple IP or a Mobile IP. A Simple IP is an IP that will not handoff between towers. A Mobile IP gives you a persistant IP that stays the same as you move between cell areas.
Mobile IP Preferred just means that it prefers to get a Mobile IP but will accept a Simple IP if it can't get one (so I can see how this fixed the data problem of the original poster). I can't see how this option will prevent Sprint from billing you for PAM if they want to (but I don't know what the registry settings might affect).
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