At last i managed to get browsing working through 3G connection in android (donut 1.6).
– Enable root in android
– install android-wifi-tether (http://code.google.com/p/android-wifi-tether/)
– configure it either with bluetooth or wireless
– connect your laptop with the android using wireless or bluetooth
– there we go now you should be able to browse internet, if you have netfilter module properly working in wireless tether
– since my kernel doesnt have netfilter module, the natting was not working – I was able to resolve domains from my laptop , but was not able to get the data
– Installed proxoid, and started
– Configured my webbrowser to use proxoid as proxy, it works … charm!!!!