Here is the guide to root your Mi-350n/IQ 260:
1.First enable USB Debugging.[Settings-
2.Download Spice Mi-350n/Fly IQ 260 drivers(ADB
driver included) from attachments and extract it
on your Desktop.
3.Download SuperOneClick v2.3.1 and drivers
4.Now connect your phone to your pc with USB
debugging mode enabled.
5.Windows will not be able to install drivers on its
own. So, go to 'Device Manager'. Under 'Other
Devices', you will have your phone's name, Spice
Mi-350n/Fly IQ260. 6.Now right click and select 'Update Driver
Software...' and select 'Browse my computer for
driver software' and browse to the location
where you extracted the drivers and click 'Next'. 7.Windows will install all the required drivers. 8.Now unplug your phone and re-plug it to your
pc with USB Debugging mode enabled. 9.Now open, 'SuperOneClick.exe' (Run it as
administrator). 8.Now under 'exploit' change 'Auto' to
9.Now click 'Root'.
10.Your phone will be rooted successfully !!
Here is a link for superoneclick
Multiupload.com - upload your files to multiple file hosting sites!