OK. It finally worked. Thanks to all including forums like modmyifone.com. Previously only email worked. I used to get HTTP ERROR CODE. Here's what I did.
1) Install diskaid to browse files on your iPhone without ssh
2) Add this to your preference.plist (copy old file to a folder (on your computer), edit it & add the following, delete old file from device & copy this new file to device). No need of proxy.pac
Code:
<dict>
<key>Interface</key>
<dict>
<key>DeviceName</key>
<string>ip1</string>
<key>Hardware</key>
<string>com.apple.CommCenter</string>
<key>Type</key>
<string>com.apple.CommCenter</string>
<key>UserDefinedName</key>
<string>com.apple.CommCenter (ip1)</string>
</dict>
<key>Proxies</key>
<dict>
<key>HTTPEnable</key>
<integer>1</integer>
<key>HTTPPort</key>
<integer>8080</integer>
<key>HTTPProxy</key>
<string>216.155.165.50</string>
<key>HTTPSEnable</key>
<integer>1</integer>
<key>HTTPSPort</key>
<integer>8080</integer>
<key>HTTPSProxy</key>
<string>216.155.165.50</string>
</dict>
<key>UserDefinedName</key>
<string>com.apple.CommCenter (ip1)</string>
<key>com.apple.CommCenter</key>
<dict>
<key>AllowNetworkAccess</key>
<integer>1</integer>
<key>Available</key>
<integer>1</integer>
<key>Setup</key>
<dict>
<key>apn</key>
<string>wap.voicestream.com</string>
<key>password</key>
<string></string>
<key>username</key>
<string></string>
</dict>
<key>Version</key>
<integer>1</integer>
</dict>
</dict>
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