SBS2008 No internet connection to User PC

Some things I would try:-

1) Get the full IP details on a known working PC. Once done, temporarily power down that PC. Assign those IP details statically to a currently non-working PC, and see if it get's internet access. If so, it may be a policy (either group policy or firewall) allowing only certain IPs to get internet access.

2) Take one of the non-working PCs and plug it in place of a known working PC, using the working PCs existing LAN cable and wall port.

I assume your SBS is configured as DHCP server, DNS and router as well.
Is internet working on SBS?
when you connect client (windows computer) into your LAN and it get IP and other stuff, do you have correct IPs for gateway and DNS?
what if you ping some external server from the client? (ping www.google.com)
what if you run a tracert command on the client? (tracert www.google.com)

SBS is configured as DHCP and DNS router is up and working fine.
Internet is working on SBS.
Correct IP's do show up on the Client PC.
unable to ping google.com
have not tried tracert (not in a position too at the moment)

Hope this helps

Can you try changing (temporarily) the DNS settings on one of the non-working PCs to 8.8.4.4 and 8.8.8.8 (both of them Google's own DNS servers) and see if internet connectivity works then?

I have tried this but it makes no difference.

OK, so from the non working PCs, do you get a ping response from your default gateway IP address? Is the default gateway IP that of your router, or of the SBS server?

Also, what make/model of router do you have connecting to the internet?

Does the router mistakenly have DHCP enabled as well as the SBS server?

It would really help if you could post a COMPLETE IPCONFIG /ALL from both the server and a workstation.

do you have some firewall (windows or 3th party) installed on client? If so try to disable temporarly for test.
Also if you have possibility to boot some liveCD, e.g. Ubutnu to check internet connectivity you can see if it is LAN related or computer related.
You mentioned more than one PC is affected - who OS was installed? some deployment or clonning? Or just manul install (from DVD) on each machine?

PC's are refurbs.

Server IP config
Windows IP Configuration

   Host Name . . . . . . . . . . . . : SBS2008
   Primary Dns Suffix  . . . . . . . : xx.xxxxxxxxxx.local
   Node Type . . . . . . . . . . . . : Broadcast
   IP Routing Enabled. . . . . . . . : Yes
   WINS Proxy Enabled. . . . . . . . : No
   DNS Suffix Search List. . . . . . : xx.xxxxxxxxxx.local
                                       xxxxxxxxxx.local

Ethernet adapter Local Area Connection:

   Connection-specific DNS Suffix  . :
   Description . . . . . . . . . . . : HP NC326i PCIe Dual Port Gigabit Server A
dapter
   Physical Address. . . . . . . . . : xx-xx-xx-xx-xx-xx
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes
   Link-local IPv6 Address . . . . . : xxxx::a4d0:xx:xxxx:3d16%xx(Preferred)
   Link-local IPv6 Address . . . . . : xxxx::d1f5:xxxx:2da0:xxxx%xx(Preferred)
   IPv4 Address. . . . . . . . . . . : 192.168.51.1(Preferred)
   Subnet Mask . . . . . . . . . . . : 255.255.255.0
   Default Gateway . . . . . . . . . : 192.168.51.254
   DHCPv6 IAID . . . . . . . . . . . : 181699940
   DHCPv6 Client DUID. . . . . . . . : xx-xx-xx-xx-14-xx-68-xx-D4-xx-64-xx-5E-xx

   DNS Servers . . . . . . . . . . . : xxxx::d1f5:xxxx:2da0:xxxx%xx
                                       192.168.51.1
                                       192.168.51.5
   NetBIOS over Tcpip. . . . . . . . : Enabled

Tunnel adapter Local Area Connection* 8:

   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix  . :
   Description . . . . . . . . . . . : isatap.{xxxxxxxx-xxxx-xxxx-xxxx-xxxxxxxxx
xxx}
   Physical Address. . . . . . . . . : xx-xx-xx-xx-xx-xx-xx-xx
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes

Client IP Config
Windows IP Configuration

   Host Name . . . . . . . . . . . . : RECEPTION-1-PC
   Primary Dns Suffix  . . . . . . . :
   Node Type . . . . . . . . . . . . : Hybrid
   IP Routing Enabled. . . . . . . . : No
   WINS Proxy Enabled. . . . . . . . : No
   DNS Suffix Search List. . . . . . : xx.xxxxxxxxxx.local

Ethernet adapter Local Area Connection 2:

   Connection-specific DNS Suffix  . : xx.xxxxxxxxxx.local
   Description . . . . . . . . . . . : Realtek PCIe GBE Family Controller
   Physical Address. . . . . . . . . : xx-xx-xx-xx-xx-xx
   DHCP Enabled. . . . . . . . . . . : Yes
   Autoconfiguration Enabled . . . . : Yes
   Link-local IPv6 Address . . . . . : xxxx::xxxx:xxxx:xxxx:xxxx%xx(Preferred)
   IPv4 Address. . . . . . . . . . . : 192.168.51.38(Preferred)
   Subnet Mask . . . . . . . . . . . : 255.255.255.0
   Lease Obtained. . . . . . . . . . : 15 May 2014 13:49:20
   Lease Expires . . . . . . . . . . : 23 May 2014 13:49:19
   Default Gateway . . . . . . . . . : 192.168.51.254
   DHCP Server . . . . . . . . . . . : 192.168.51.1
   DHCPv6 IAID . . . . . . . . . . . : 314591744
   DHCPv6 Client DUID. . . . . . . . : xx-xx-xx-xx-xx-xx-xx-xx-xx-xx-xx-xx-xx-xx

   DNS Servers . . . . . . . . . . . : 192.168.51.1
                                       192.168.51.5
   NetBIOS over Tcpip. . . . . . . . : Enabled

Ethernet adapter Local Area Connection:

   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix  . : sb.xxxxxxxxxx.local
   Description . . . . . . . . . . . : Intel(R) 82567LM-3 Gigabit Network Connec
tion
   Physical Address. . . . . . . . . : xx-xx-xx-xx-xx-xx
   DHCP Enabled. . . . . . . . . . . : Yes
   Autoconfiguration Enabled . . . . : Yes

Tunnel adapter isatap.sb.xxxxxxxxxx.local:

   Media State . . . . . . . . . . . : Media disconnected
   Connection-specific DNS Suffix  . : sb.xxxxxxxxxx.local
   Description . . . . . . . . . . . : Microsoft ISATAP Adapter
   Physical Address. . . . . . . . . : 00-00-00-00-00-00-00-E0
   DHCP Enabled. . . . . . . . . . . : No
   Autoconfiguration Enabled . . . . : Yes

Many Thanks for this great solution. I was starting to despair.

Good catch Rob.

Just luck Jeff :-)

It would only be lucky if you had no clue at all about this stuff.  LOL

We learn from our mistakes.  I remember beating myself up over the same problem 10 years ago with a Watchguard.

yep, and the same thing with SonicWall's if they aren't registered