I've had to reinstall XP Pro after a ram problem causing windows to hang on the blue starting windows screen. I am able to surf the net with my local are connection, but internet is not connected. I found this out cause I am using Network Magic and Local Network shows connected, but internet shows no connection. Also when I put my Router CD in and try to do a reinstall, same message is basically displayed. This is also causing my Mcafee security software not to work.
I have a cable internet connection connected to a D-Link Rangebooster G router, and the router is wire connected to the desktop computer.
Everything works fine on my laptop, using a wireless connection and also Network Magic.
Please check, there may be more than one network adapters enabled on your computer, which causing problem for actual hardware network adapter to function properly.
Other network adapters may be virtual created by 3rd party softwares for their use like (Cisco VPN adapter).