I know the Hardships in it but has anyone done it? I was looking onto this MAXIM's MAX3421E chip that can act as a host but then what about the Hardware Drivers that are used by the dongle? How they can be incorporated and protocol part? , How to bring all things together so that the interfacing with the dongle is achieved.
There is now a USB host shield available (http://www.skpang.co.uk/catalog/usb-host-shield-p-710.html) that would make connecting the dongle easier.
The USB Host Shield contains all of the digital logic and analog circuitry necessary to implement a full-speed USB peripheral/host controller with your Arduino. This means you could use your Arduino to interface with and control any USB slave device - thumbdrives, digital cameras, bluetooth dongles, and much more!
In order to use it though, you would need to wirte out the drivers needed for it to work, unless someone else has. Connecting it will be easy, actually doing something with it will not. You might be lucky and find some details on the playground about the idea...
Onions.
But the same problem will be served by MAXIM chip as its the main thing and for me getting that shield that's real privilege though is a hard thing mainly because of paying procedure.