I have the same problem and I tried to root it in different ways. The first thing that you have to do is finding the ADB drivers. For this purpose you can use any adb driver compatible with MSM7627a chipset. I used ZTE drivers and also you can use Google stock driver.
Tried Rooting it with SRS root and heres w2hat i have got.
---= SRS One-Click-Root v4.5 =---
2:24:00 AM - Starting ADB Server..
2:24:06 AM - Manufacturer: Dialog
2:24:07 AM - Model: Dialog i35
2:24:07 AM - Android Version: 2.3.5
2:24:07 AM - Build ID: Dialog_i35_20121124_V1.1
2:24:07 AM - Board ID: msm7627a_sku1
2:24:07 AM - Chipset Platform: msm7k
2:24:07 AM - Getting OffSets.. : 0x8003 0x8005 (False)
2:24:08 AM - Query Server for Best Method.. Not Found (SmartRoot not possible yet)
----= Start Rooting Process.. Please Wait =----
2:24:09 AM [+] Testing exploit: root1 (Please wait some minutes)....
2:24:10 AM [+] Executing root1 exploit Failed, Proceed next...
2:24:10 AM [+] Testing exploit: root2a (Please wait it can take some minutes)....
2:24:30 AM [+] Executing root2a exploit Failed, Proceed next...
2:24:30 AM [+] Testing exploit: root4 (please wait..)
2:24:33 AM [+] Device Reboot #1 (Wait till it's started)
I cant flash anyother rom as I dont have any stock rom. However when you press volume + - together and swtich on the phone you can install an update from SD card. I am trying to use universal gb root as we cant flash the rom unless we get a copy of that from dialog.

Dialog says this phone as Innos a35 but this has a different chipset. So want be able to use that Rom either. I will update this discussion with my findings if you are interested. Please share if any one has done this successfully.
Also tried Gingerbreak. Didnt work that on mine either. Please try in yours and see.