Connecting another computer

[#1]

Just tried the ping. Seems fine ( Looks pretty much exactly the same as my pc connected to the internet) 0 packets lost etc.
Just compared ipconfigs aswell only difference is that on the XP machine the Node Type is unknown. Is this important?

[#2]

So you have connection to the internet.
Have you checked your LAN Settings in IE ? (Tools->Internet Options->Connections->Lan settings)
Are any of them enabled? If so then try disabling them.
Not sure about  the unknown node type

[#3]

Just checked those settings. Turned off the proxy setting option. Internet is up and running 

Thanks alot for the help.