Actually, the PC Suite Mode is required for USB Networking (
After doing all this, I was able to get it working on my XP. However, there was one big issue. If the USB cable is disconnected and re-connected, the Local-Connection created during installation no longer appears under Network-Connection window. Rebooting doesn't help. The only way to get it working again is to re-install which creates yet another connection. Is there a solution to this?
Another drawback of this approach is that the device does not charge which enabling the USB-Networking mode on the N900 via the pc-connectivity-manager. Are there plans to address this?