Just got this Huawei E160E working with pppd. Happy holidays, no more surfing in IE!
In case any Google hits get here.
As root, I run
/usr/sbin/pppd /dev/ttyUSB0 460800 modem crtscts defaultroute noipdefault usepeerdns ktune noauth lock nobsdcomp novj connect "/usr/sbin/chat -v -f /root/Desktop/chat2.txt"
where /root/Desktop/chat2.txt contains
# chat script for Huawei E160E HSDPA USB stick with Optus prepaid mobile internet
# Developed from sakis3g script
ABORT 'NO CARRIER'
ABORT 'NO DIALTONE'
ABORT 'NO ANSWER'
OK 'ATQ0 V1 E1'
OK 'AT&D2 &C1'
# "preconnect" is APN for Optus prepaid; "internet" is APN for Optus postpaid
Just need to remember to update /etc/resolv.conf with the contents of /etc/ppp/resolv.conf on initial connection and ensure that /etc/ppp/ip-pre-up is a symlink to a suitable firewall.