I could figure out the source of the problem. When I installed fedora 8 (the guest), I specified a gateway IP address where I don't have a gateway coz Im connected to Internet directly (not thru gateway). I had to remove the Gateway entry from host operating system coz that's where I connect to internet from. I still dont understand how come the entry appeared with host o/s when I actually specified gateway when I install guest.
Im preparing for RHCE certification exam. So, I wanted to practice few server configurations on my laptop. As I dont have more than one system available, I can't have LAN setup. Virtualization is the only way of running more than one o/s simultaneously so that I can configure the server on host o/s and client on guest o/s vice versa. I can't achieve this with dual boot where I can run only one O/S at any particular instance.
Anyway, thanks for ur replies guys..