I looked at three other R40s (2681) with the same dead LAN (or so it seems) issue. All were fixed after resoldering the IC located on the main board adjacent to the LAN port. Seems the solder used in many R40s (version 2681 anyway) was very brittle (lead-free) and easily fractured after moderate impact or flexing of the main board. I am willing to bet this fix will serve 95% of the dead R40 LANs out there.
Hope this helps. So don't throw these out with the bathwater. Just replace the hot running Celeron CPU (if you have one) with an intel 4-M (on ebay, cheap), max out on the RAM (at least 1 GB), watch out for those those vampire apps and your R40 will run like a cheetah. These laptops are a JOY to work on. Wish they were made this way today. You will have to pull my R40 from my cold dead hands.
ibm r40 i was (have) installed the drivers but lacalarea (local area) connection unpluged is showing lan cable connected na that time all so same status
kindle (kindly) help