That dongle isn't a WiFi dongle, it's a 3G dongle. And you're phone is not 3G, it's only WiFi.
The 2 ways to do that seem to me:
1. The device from http://www.tataphoton.com/photon-wi-fi-hub.aspx combined with a wireless WiFi dongle in your PC
2. Using Internet Connection Sharing on your PC, then connect that to a wireless router that you setup as being an access point.
Method 1 is basic. The main disadvantages of method 2 are (a) configuring ICS seems to be prohibitively difficult and (b) your PC needs to be switched on to use Internet on your phone.