Iphone 4 to ipad 2 tethering problem

i got a wifi ipad 2 as i have tethering on my iphone 4 contract.  I have set up the personal hotspot and the ipad finds it and connects via wifi.  But the wifi symbol doesn't appear instead its a a chain link type symbol.  When i try to get online nothing happens.  I have connected an ipod touch to my personal hotspot and it works fine.  Can anybody help?
Thanks

I do the same thing.  16gb wifi ipad 2 and teather to my ATT iphone 4...  I too get the chain link, and at times it does not work as well.  What I do, is turn my ipad off, and then back on.. And then reestablish my link.  All is well after that.
I have not had a chance to try it since the most recent update to both devices, so unaware if the new updates fixed the problem, but it does seem like a bug to me.
I hope I've been some help

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