Here is the solution for IE not being able to connect to internet.
OK, I almost never post solutions, but felt this is the time to do it.
Scenario: Client had a few hundred viruses...after I fixed them, I could not connect to the internet using IE...only Firefox.
Problem:
1 - IE (Internet Explorer) can not get out to the internet...error message is "Internet Explorer cannot display the webpage".
2 - Spybot cannot install or update...error message is "Connecting to 127.0.0.1..." then it errors out.
3 - Windows update will not work, since it MUST use IE to do so.
4 - Dloading latest IE using Firefox and installing IE does NOT fix problem.
5 - However, Firefox DOES work...there is nothing wrong with the HOSTS file...I *can* ping
www.google.com, etc.
SOLUTION: Change IE Connection & Proxy & LAN Settings.
Basically, you have to go into IE settings, Connections Tab, Delete any Dialup and VPN Entries, and then click on button labeled LAN Settings and uncheck all of the boxes (at least, this is what I did for IE 8....other versions could be different). This includes uncheck "Autodetect settings" and Proxy options.
Yee-hah...fixed it for me...good luck to all.
-Spikeman