NOTE: This tutorial concerns the 8525 with AT&T hardware and/or software branding, this includes the Cingular 8525 that has been updated to the AT&T ROM (v2.15 or above) or the AT&T 8525. If you're using a Cingular 8125 without AT&T branding in the OS, please refer to this tutorial for older connection method.
Introduction: A New Connection Method
The Cingular 8525 running the Cingular branded Windows Mobile OS used a connection method that employed a software utility called Wireless Modem. This software allowed the 8525 to act as a wireless broadband modem for Windows PCS. When AT&T rebranded the 8525 and released a software update for existing Cingular 8525 devices, this Wireless Modem utility was replaced by a similar utility called Internet Sharing. Though similar in many respects, the procedure for using Internet Sharing is different from the method used when Cingular deployed the 8525, and actually much simpler.
Though the AT&T 8525 runs Windows Mobile 5, Internet Sharing is a feature built into Windows Mobile 6.
Step 1: Enable Internet Sharing
In order to connect the AT&T 8525 to your Windows PC as a modem rather than as a PIM (Personal Information Management) device through ActiveSync or Windows Mobile Device Center, you must put the handset in Internet Sharing Mode. To do this, select Programs from the Start Menu, then select Internet Sharing:

In the Internet Sharing utility, select USB in the Connection Type menu. Bluetooth will also be an available option, and while it is possible to connect your Windows computer to the 8525 over Bluetooth for use as a modem, that procedure isn't discussed here. With the 8525 connected to your PC via USB, press the left soft-key on the AT&T 8525 screen to select Connect:

The first time you do this, Windows will identify the 8525 as an Internet connection device and load the appropriate drivers automatically; there's no need to download additional software, though you must have ActiveSync or Windows Mobile Device Center installed on your PC for this connection to be recognized.
Step 2: Browse the Web
With the AT&T 8525 in Internet Sharing Mode, connectivity is shifted from ActiveSync or Windows Mobile Device Center. You cannot sync the 8525 with your Windows PC while in this mode.
Windows will use the connectivity protocols in the 8525 to connect to the AT&T wireless network. Connectivity will be noted in the Windows Task Bar. Note that you must have a wireless data plan from AT&T to use this functionality.
All that's left to do is surf.

Final Thoughts
The speed of your connection to the Internet with the AT&T 8525 will vary depending on your signal strength, the type of network deployed in your area, etc. It's worth repeating that you'll need a data plan from AT&T Mobility in order to use the handset as a modem when connecting to the AT&T wireless data network.
As mentioned, the AT&T 8525 can be used as a Bluetooth modem as well, which does not require a USB cable for connectivity to your Windows PC. The procedure for using the 8525 as a modem over Bluetooth is quite similar to that shown here. If there is interest, we'll post an additional tutorial covering the details of the Bluetooth method.