Does this surge protector need the outlet to have a ground wire ?

Solution

The neutral connector (2nd prong) should be at or near ground potential. If the voltage suppression mechanism used by the surge protector (e.g. MOV) is situated between live and neutral connectors, it would work just fine without being plugged into a grounded outlet.
How do you think a surge protector works?

When it gets any amount of voltage beyond what it is supposed to, it dumps the extra current to ground.
Having a surge protector without ground is like having an inflatable life raft with a 3" hole cut into it.

Is it that your 3 prong/hole outlets are not grounded, or that you only have 2 prong outlets?
Many older wiring boxes has a ground wire, it is just connected to the metal box the outlet is in. If that is the case you can take a 2 prong to 3 prong adapter, remove the center screw in the outlet cover and use that to connect the adapter to the outlet cover. This then adds ground to that outlet.
 
I thought my basement outlets don't have grounds (because my bedroom's outlets didn't have it and I had to call in the electrician to fix them) , I took the surge protectors to the basements and I figure they are all grounded ... Lucky Me!!!
 

The neutral connector (2nd prong) should be at or near ground potential. If the voltage suppression mechanism used by the surge protector (e.g. MOV) is situated between live and neutral connectors, it would work just fine without being plugged into a grounded outlet.
 
Solution
I should probably emphasize the big "if" in my last post. I have no idea if that's how this particular surge protector is designed. It's entirely possible that one needs ground. I was just saying that lack of ground doesn't automatically mean that any surge protector can't work.
 
Surge protectors are called 3-mode for a reason. There are MOVs between all three wires: H-N, H-G and N-G. If one wire (the Ground) is not connected then the only MOVs that can work are between Hot and Neutral. This means if your surge protector is rated 3390 Joules, only 1130 Joules worth of MOVs can be used and you are wasting 2/3 of the capability of the surge protector. But it's still partially "working," sort of.

There is one type of surge protector that doesn't need the ground wire--the inductive type. Brand names of these include Zero Surge, Brickwall and SurgeX but I warn you these are expensive enough that it may be cheaper to rewire your outlets with a ground wire.
 
I also have an online UPS , Does this online UPS work in the same way SPs work ? It still needs a ground I guess .... My understanding is that Online UPSs Work like this :

main-qimg-263f5d06d56921e89d138d9fbc1dca2e


main-qimg-bd673e4c1bf8a7e2766bd555486abe7b


But the Surge suppressing component in the UPS is still the same ...

here is the link to my UPS:

http://excessups.com/liebert-gxt2-700rt120-refurbished
 
Surge component should be the same as any ordinary surge protector but there are no specs given whatsoever besides IEEE/ANSI C62.41 Category A & B rating for indoors, greater than 30 feet from service entrance. Not even UL 1449 3rd ed rated.

So I would expect it to be the same as the cheapest surge protectors possible. If you look inside and there's only one MOV and a thermal fuse, it will work just as well without a ground if it's connected H-N. If it's connected H-G then the surge protector part will obviously not work at all without the ground.