I have a similar configuration with my a500.
For connecting to the internet I use magplip device from aminet with a plip cable (Which I made from a parnet cable. swapped a couple of wires). I use the tcp stack amitcp.
An a1200 with miamidx acts as a gateway for the a500. You could also use it with linux though I think on a pc.
The cable does about 20kb a second. ftp/yam/irc etc work great (Although mui is a bit slow). I don't browse on it much though, although aweb does work.
These days it's mostly used for transferring software between machines.