Win7 claims I'm connected to the internet... it lies.

So I just brought a brand new PC running Win7 and I've got it plugged into my netgear router.

It seems happy, the network and sharing center shows that everything is fine, it can even spot my laptop connecting wirelessly to the router. It also says I'm connected to the internet. However if I try and open IE or Firefox or anything else that actually uses the internet nothing happens. They search for something that's never comes.

I've messed around for hours now fidling with options, turning things on and off and whatnot.

HELP!