Hacked ROM for the Google Nexus One phone aka Google N1 has been released by cyanogen and is available for porting into android phone that will help in optimizing the Nexus One phone speed and will enable USB tethering as well. Once you install the new cooked ROM by cyanogen, you can install the various applications available for the Nexus One, like wired tether, the VPNC client, Adfree plugin and many more. You may also follow our step by step guide on how to enable WiFi tethering on nexus one.
How to install Hacked Cyanogen ROM to Nexus One
Step #1 Visit http://n0rp.chemlab.org/android/nexus and download boot-bacon1.img which is compiled with some optimizations, adds iptables, tun, and the RNDIS USB tether patch. Also sets adb to run as root. You’ll also find a Superuser.apk and su binary which works on 2.1.
Step #2 Unlock your Google Nexus One phone and reboot to fastboot.
fastboot flash boot boot-bacon1.img fastboot reboot adb remount adb push bcm4329.ko /system/lib/modules adb push Superuser.apk /system/app adb push su /system/bin adb shell chmod 4755 /system/bin/su
Step #3 Install wired tether, VPNC client, Adfree, N1 Torch, and all that good stuff you want to spice up your nexus one.
Via [cyanogen on twitter]