Unlimited data on Droid 1 - how to create hotspot?

Hello,
I have a two part question.
1: I have an original droid on unlimited data that is beginning to get flaky. What are my replacement options without upgrading plans? I assume I can at least replace it with another droid without losing my unlimited plan? Are there other options that won't destroy the unlimited?
2. I want to create a wi-fi "hotspot" using the phone on this account. I had a tech friend back in the day of the original droid who had done this without paying any extra. I don't know how he did it.
Since I need a new phone anyway, I would be willing to buy a working droid that has been set-up to do this already, as long as I can put it on my account without losing unlimited.
--John

Your replacement options to not lose unlimited data would be to purchased a used device or purchase a device at full retail.  Doing a 2yr contract upgrade or participating in the edge program will require you to drop unlimited data.
I'm not sure what you're friend did either.  To add the ability to use hotspot you would have to pay more per month or move to a share everything plan which wont allow for unlimited data.  I'm also assuming your droid is 3g and not 4g, so you if you do opt for the mobile hotspot feature then any data used through the hotspot would be capped (your phones direct data will still be unlimited).

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