OK guys, I appreciate your help. I'm not going to be able to try anything tonight, my neighbor's not around. Supposedly the PC worked fine up until a NIC was installed and a home network was setup. I did this for them about 5 months ago. They have 3 machines and a laptop on the network. They don't have any need for broadband and only occasionally will go online. That's why I just found out about the problem now. One more thing, Norton Firewall was also installed at the same time. Don't ask me why, without broadband and such little internet activity I don't think they have anything to worry about, but it was already installed when I went over to do the network. I have this weird feeling that, even though it's disabled, the firewall may be causing these problems. I'm going to uninstall it just to be sure. Although with Norton, even an uninstall doesn't mean too much.
One quick thought about the DNS server, Norton System Works uses Live Update to search for program and virus definition updates. I would imagine that the program searches using Symantec's IP addresses, right? If Live Update couldn't see the connection, wouldn't that rule out a DNS server problem?
Here's my plan when I go back over:
1. Check for line noise
2. Try pinging - if works, follow up on DNS settings.
3. Uninstall Norton Firewall
4. Reinstall modem drivers
5. Reinstall DUN
I'll keep you guys posted.