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Thanks. I figured it out. The problem was I was trying to download from PC via WIfi. And the speed was so slow - I thought it was downloading from internet. Replaced Wifi with LAN and BAM!- Lightning speed :) Thanks for taking the time, man. Appreciate it.

I ensured offline is not working. Sill no luck But thanks for trying. Sometimes Life is what it is 

Thanks. I am sure the proxy is enabled. By untick offline mode, do you mean that button after offline textbox? (So the button should read enable?) One more question, would still my download speed on PS3 from PC still depend on my crappy download speed?

Nice job on tutorial. But I am still facing one final hurdle. When I try to resume download on ps3, it is still downloading via PSN and not from my PC. Any ideas? Also I had closed PSX down while downloading in PC. When I reopened it, all earlier data was lost. Now I dont have a place where...