PDANet 1.10 for Mac with PDANet 5.02 not working in Lion

After I upgraded my Mac to OS X Lion (10.7) last night, I have not been able to tether via USB to my iPhone running PDANet.

I have uninstalled and reinstalled PDANet on the Mac. I cannot add a PDANet network interface anymore. When I click on PDANet icon's Connect in the Mac OS X status bar, the icon does not get filled with blue and no connection is established. On the iPhone, the PDANet app shows the connection screen for a split second and then goes back to the choice of tether types. I have tried to search the Web today, but I am not seeing any references to PDANet not working as of this morning. Perhaps this is an issue with iTunes 10.4 and not Lion? Or perhaps it is Lion that has caused this.

After upgrading to Lion, I have had other applications not working: ZTerm, Keyspan USA-HS19 USB-to-Serial adapter, Glims, Java apps (no Java Runtime in Lion anymore), and now it's PDANet. I have been able to fix all other issues, but not the PDANet's USB tether.

My software versions are:

Mac OS X: Mac OS X Lion (10.7)

PDANet for Mac: PDANet 1.10

PDANet for iPhone: PDANet 5.02

iTunes: iTunes 10.4

iOS: iOS 10.3.3 running on iPhone 3GS

Anyone else having this issue?