After debugging the "White Page" problem for a while I gave up on it (followed instructions and suggestion found previous in this thread). In short the problem seems the socks server is not starting properly, the forward works fine and in the log of the phone I can see the connects.
So I decided to try a different approach using the port bouncer. I guess this solution is some what hacky and a bit more advanced, however it works well so I decided to share it anyway.
* A box to which you have ssh access
* A proxy server on that box (I installed tinyproxy on mine, nice and easy)
I started out with testing the Port Bouncer, I entered the IP address of the box I have ssh access to and of course the ssh port number which is 22. And hit the start tunnel button.
Next I told adb to do the forwarding:
adb forward tcp:4444 localabstract:Tunnel
And then a quick test with ssh:
ssh -p 4444 user@localhost
That should land you in the remote shell of your box, eureka.
Next thing for me was installing tinyproxy, noted the port it is running on in my case 8888.
Last thing to do is setup the ssh tunnel:
ssh -p 4444 localhost -L 9999:localhost:8888
As expected this worked as well. Basicly this connects the remote proxy port (8888) to local port 9999. So last step is to configure your apps to use proxy server localhost
with port 9999
It all works well for me, chatting, browsing, irc, etc etc. I did this on my mac so I don't have to deal with driver versions but other then that this should work fine on any platform (windows users should use something like Putty ssh).
Last thing I did was adding a shell alias to the adb command and the ssh tunnel command so I only have to type a small command to set it all up.
So another poor mans version to tethering with Andriod