Coming back with latest news, it seems to be an issue with E220
firmware.

I did a E220 FW upgrade with version from 
http://www.maxis.com.my/maxisbb/download/E220SoftwareUpgrade.zip, using my Win 
XP home PC. 
Right after this upgrade, I tested with 2.6.31-15 kernel and ... worked !

Actually, I am writing this on my notebook with E220 internet
connection.

I have upgraded both firmware and dashboard application, but I belive
that for Linux, firmware will be the only necessary upgrade.

Cheers !

-- 
Huawei E220 modem unable to connect under Karmic
https://bugs.launchpad.net/bugs/449394
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