So my HTC Magic got the Froyo update last week. The problem was that it broke "the internet".
I thought it was due to the fact that my phone was an Australian Vodaphone branded HTC Magic and the update was through a UK network intended for UK/European versions of the phone. I was going to get a new phone anyway (The Nexus S) so I didn't mind, and put it aside for a later date.
Well it turns out that the mobile internet was also broken on the Nexus S (see my previous blog). In any case, once I fixed the configuration issue on the Nexus, I tried the settings on the HTC and it worked! So here are the settings I used:
APN type: internet
Leave everything else blank! Even the proxy!
Hopefully this works for you.