Definitely connected, as I could access several sites I tried, but couldn't get to microsoft.com, myspace.com, photobucket.com (and many more).
The PC is hard wired to the Belkin.
The other thing I noticed is that Windows update didn't get anywhere (just showed a progress bar for ever and a day), and the RSS News headlines in the Windows Vista sidebar just wouldn't update.
I'm going back over there today to have another look, so your ideas would be most welcome.
I've checked for spyware/malware, but everything's clear as it's a brand new machine out of the box a couple of hours before I posted the question.
I tried pinging 22.214.171.124 (for myspace), and all was well, worked fine, average 167msecs, no loss. Can't access the site though. However, pinging "myspace.com" from the cmd prompt, is fine.
The DNS setting within the router were set to retrieve them automatically, but then at the suggestion of someone else, I set them to Primary 126.96.36.199, Secondary 188.8.131.52 (Supanet DNS details). No difference.
I've checked IE connection setting (IE, tools, internet options, connections and lan settings) and have unticked everything (then again the only item ticked was the 'obtain setting from ISP automatically' type box.
The machine's not had any prior contact with any other networking device, so doesn't have any rogue IP information set.
My Belkin router has a built in 'Parental Control' that can also be set to restrict sites of own choice. Has your router been set to use this function. If so I would turn it off for now whilst you are setting up the computer.