NIC will receive but not send

Yesterday as I was about to apply updates to a Windows 2003 application server running Apache, the NIC stopped sending packets.  No updates were done.  Checking the NIC status, you see the packets coming in, but the sending number stays constant.  After rebooting, the sending number reaches approx. 700 and then all sending stops.  I can ping the loopback and the machine by IP and name.  When I ping the gateway, I get "destination host unreachable."  When I look at the ARP table on the switch, the switch can see the machine but it cannot ping it (the machine will send one packet to the switch).  I have verified the settings on the card (static IP).  I have disabled the card and re-enabled it.  I have uninstalled the card and re-installed it.  I have plugged the cable into a different switch port.  I have swapped out the network cable.  I have verified the switch configuration.  The firewall service is not running.  I have shut down the HBSS .  I verified the HBSS logs and they were clean.  I checked the system and application logs and there are no events that have anything to do with the netwok issue - only errors after the network went down.  I have run a Symantec full scan and it was clean.  I have installed a USB NIC - the problem happens on this new NIC as well.  One really weird item:  I disabled the USB NIC and re-enabled it, and even though I have a static IP, the card is trying to use DHCP.   I have done everything I can think of to track down the problem.  Can anyone help with other suggestions before I attempt a repair of the OS?
Tracy LaugleSr. Systems EngineerAsked:
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ukznmclCommented:
Try disabling the windows firewall, also check for the IPSec service to make sure that is running. Also remove antivirus software to make sure that something hasnt become corrupt there. They are the things i would try.

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Tracy LaugleSr. Systems EngineerAuthor Commented:
As I stated above, the firewall service is not running.  I had started checking the IPSec - the service is not running.  The server used to be on a network that used IPSec.  Now it is not.  The service is still there and set to automatic, but it doesn't start. (Weird thing - the server was fine before yesterday at 12:45pm)  When I try to start it, it gives me an error that there is a file missing.  I checked the event logs and get event ids 4292 and 4294.  I did a search and it points me to Microsoft KB 870910, which describes my issue perfectly.  My problem is the registry key it tells me to delete to solve the problem - it's gone.  The HKLM\SOFTWARE\Policies\Microsoft\Windows\IPSec key does not exist.  I am looking at another server to get the configuration of the key and I will try to duplicate it.  If  you have any words of advice about doing that, I'd be most grateful.
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ukznmclCommented:
You need to rebuild the ipsec policy as in the KB article:

Type in the following command in a cmdline:

regsvr32 polstore.dll

Then you should be able to start the ipsec service. Even if you arent using ipsec the service still needs to be running otherwise you will have no network communication as you described.
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Tracy LaugleSr. Systems EngineerAuthor Commented:
The MS KB870910 is the solution.  If your registry key is gone, as mine was, you must put a key in place before registering the .dll.  If you add HKLM\SOFTWARE\Policies\Microsoft\Windows\IPSec, HKLM\SOFTWARE\Policies\Microsoft\Windows\IPSec\Policy, and HKLM\SOFTWARE\Policies\Microsoft\Windows\IPSec\Policy\Persistent, then when you register the .dll it will add the Local Key under Policy.
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