At last, done doing the setup for Huawei E220 on WL-500gP using openwrt kamikaze 7.09. Just follow the method on:- http://www.umtslink.at/3g-forum/showpost.php?p=528907&postcount=8.
Now my broadband service can be shared among my family. Attached are the photos of the 3g modem and the wireless router setup.

Shot from top
Only made a little modification to dial the ppp connection. Just edit the startup script /etc/init.d/done and use the code below
#
pppd call e220
sleep 30
if ! ifconfig | grep ppp0 > /dev/null; then
reboot
fi
ntpclient -c 1 -d -s -h my.pool.ntp.org
#

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