OS Windows XP SP2 and latest fixes
I had a problem first with the DHCP client jamming in starting state. So the machine did not get any IP address. I managed to bypass that, but turned in another problem. I can get an IP address and ping e.g. DNS server, but my browser cannot display webpages. Diagnose from IE7 proposes to turn off the router. The log shows error 'Could not make an HTTP connection' and similar errors for HTTPS and FTP.
I placed a hub between and connected another computer to the same wire and now I am writing this message. So, the problem resides in XP.