Is it possible to interface the above mentioned modem with an arduino duemilanove and have internet connection,send sms messages etc????
Any time you have a hardware question, it's a good idea to post a link to the hardware. I, and others, don't always feel like googling for you, and may not find the device that you have, or are contemplating getting. So, the answers we give, for different hardware, won't help you at all.