I just picked up a Gateway LT netbook and am able to connect via my wired home LAN. I can access my network storage, access the remote desktop on my other systems, and all-in-all have full local network functionality. That is, until I try to access the internet. When I try to access the internet on my wired LAN I get nothing. I can't ping anything that isn't local. Google pings fail, and I can't access anything outside of my house.
But when I connect my phone (HTC Touch Pro) and use the internet connection sharing, suddenly I can use my Qwest DSL at full speed and connectivity. When I run a check to see what connection IE is using, it comes back as a Qwest IP. Everything works great, until I unplug my phone/modem, then I can't use the internet on my DSL connection any more.
What's up with this? I figure I should have the right to use my own ISP when connected at home without having to have a phone connected in internet sharing mode.
Have you checked your NETWORK SHARING BOX under INTERNET CONNECTIONS. Also have you run your router software on the netbook so as to auto acquire your IP.
This took care of my network issues at home. It is now seamless.
If you are using what MS calls a residential gateway then you do need to be assigned a local private ip address. You could try running ipconfig /release and ipconfig /renew from your command console "cmd" from the start menu run option.