Anyone else using TetherMe/ iTether? Question..

I recently jailbroke my iPhone 4 running iOS5 and downloaded TetherMe and iTether for my iPad. I had used this prior to iOS 5 but it's working a bit different now and I had a question for anyone familiar with it.

If I just turn on Bluetooth on my phone and turn on iTether on my iPad, whenever I try to connect to my phone it says it drops the connection immediately. However, I noticed there is now a personal hotspot option in Settings that I believe only got added through TetherMe that I can connect with, but I'm concerned and confused over whether this personal hotspot is the one that AT&T will try to charge me for or if this is just another way of now connecting using TetherMe without any usage charges?

Does anyone know the difference between the bluetooth connection and the personal hotspot connection through TetherMe? Any ideas on why my iPad wont connect to my phone using bluetooth only? Thanks

 

Thanks for your reply. I guess I am confused over how and when to use BT over the Personal Hotspot, and making sure I wont be charged through AT&T when using the personal hotspot option.

Previously (prior to IOS5) when I would connect all I would have to do would be turn on BT on my phone and then hit the iTether icon on my iPad and it would connect over 3G. This new hotspot vs. bluetooth is different and if I try to connect my old way, it tells me it drops the connection almost immediately. I can connect just fine using the personal hotspot I just want to make sure I wont be charged for a tethering plan or extra data usage from AT&T. I'm not sure where the line is with AT&T's personal hotspot option that which you pay for vs. the personal hotspot option through TetherMe which is free.