You can do this using PdaNet.
From KnowYourMobile.com:
To use your Milestone as a mobile broadband dongle, you will need:
Motorola Milestone USB Drivers
PDANet Tethering Software ($15.95 to buy right now, limited trial also available)
Step I:
Tap the upward pointing arrow on the Milestone's home screen to get to the app menu
Tap the Settings icon
Tap Applications
Tap Development
Check the box for USB debugging
Step II:
Install the PDANet software on both your PC and Milestone -- when installed on the desktop, it should automatically install the USB driver for you but if it doesn’t, you will have to use the driver you downloaded above.
Connect your Milestone to your PC via USB, then launch PDANet on your device
Click on "Turn PdaNet On" on the Milestone
Right-click the PDANet icon in the taskbar on your PC, then click Connect
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