Thanks everyone for your input and advice. Everything is now working with the following changes:

Public network: x.x.x.112 255.255.255.248
Public router ip default gateway: x.x.x.118

Pix 501
Ethernet0 (outside) x.x.x.114 netmask 255.255.255.248
Previous x.x.x.117- Found that it was the Tel Router IP
Ethernet1 (inside) 192.168.0.10 netmask 255.255.255.0

Global (outside) 1 interface
was 1 x.x.x.118 netmask 255.255.255.248
nat (inside) 1 0.0.0.0 0.0.0.0 0 0

Route outside 0.0.0.0 0.0.0.0 x.x.x.118 1

Access-list acl_outbound permit tcp 192.168.0.0 255.255.255.0 any
access-group acl_outbound in interface inside

CAN - CONNECT FROM ANY HOST 192.168.0.0 TO ANY INTERNET
CAN - CONNECT FROM PIX TO ANY HOST ON 192.168.0.0 NETWORK

I struggled with crossover/straight-through cables to and from pix to routers and switchs. And for some reason I can't get a ping reply from the pix outside ip address if i ping it from 192.168.0.0 network. The problem I had with ip telephone was because I was told that its outside ip address was x.x.x.114 when in fact it is the x.x.x.117. I should have found it myself by simply ping x.x.x.117 with pix switch off.