The incorrect code is in your AndroidManifest.xml.
<activity
android:name=".WebViewActivity"
android:theme="@android:style/Theme.NoTitleBar" />
You specified the theme without the title bar so you will not see the loading bar either. Just remove the theme attribute:
<activity android:name=".WebViewActivity" />
Also you have strange combination of the sdk version in the manifest and the sdk version of your build target. Change it from 10 to 8, because the build target of your project is Android 2.2 (API8)
<uses-sdk android:minSdkVersion="8" />