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Will Wi-Fi tethering work in HTC Magic running Android 2.2?

I wonder also, is the 2.2 update for htc magic a official update or one of these custom ROMs?

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Yes, you can do Wi-Fi tethering with the HTC Magic. However, it might require a custom ROM.

All versions of the HTC Magic except for the Dream/G1 have gotten an official 2.2 update, as far as I am aware. This includes the T-Mobile myTouch 3G and the Vodafone Magic.

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Not all versions. I have a Google Ion phone (htc magic 32B) whose only available versions were Android 1.5 and 1.6 I think I will never buy again a "developer phone". – jap1968 Jul 10 '12 at 9:04

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