Wired or wireless internet connection?

Wired. No router.

Did you reset the modem? If so, did you contact your provider and have them ping the modem?

and try this if you are still having issues:

go into RUN

type in: netsh int ip reset resetlog.txt

the RUN will flash and then reboot.

that usually fixes the 12007 error issues

Been there, done that.

First thing I always do. It isn't a modem problem. I can access the internet with my lappy hooked to the same modem.

It's a DNS issue. Not a connectivity issue.

I'm assuming you have a firewall. sometimes firewalls can cause the problem....

Hey RND is the only a problem using internet explorer?

have you tried another browser?

I have seen this issue associated with malware infection

reinstalling ie8 fixed it

For a minute there I thought you said "de-installing ie8 fixed it".  Oh well, we can dream .

I found ie9 is more reliable than 8.

You may be in the minority on that one Joda.

Dont know whether problem has been solved or not. But the following might help:

On desktop click on "My Network Places", this opens "Network connections" window. Then select connection, that has DNS problems, with mouse right-click, in popup select "Properties", then select "Internet Protocol (TCP/IP)" and click "Properties" button. Set radio button "Use the following DNS server addresses" and enter some DNS server IP, for example, 8.8.8.8 (Google DNS server). But in that case there won't be access to Ur LAN (WAN) via domain name (by IP only).

Problem was solved.

You can "deinstall" IE8.  Windows will revert to IE7. Unless you're running Win 7 and it came out with IE8. Hell, I can't remember.