I had a similar problem. I have a cable modem and a wireless router, when i connect my modem to my PC using ethernet connection, i get "Local and Internet", but when i connect my modem thru the router( still using ethernet, not wireless) i would only get "Local". I tried resetting both the modem and router, but i still could not get the Internet when using the router. I know that this setup will work as i have had my router and modem connected for over 1 year, and never had any problems. But i recently disconnected the router as i had no need for it. When i tried to reconnect the router( after a couple of weeks) thats when the problems started. I never solved my problem( i just dont use the router anymore), but the one thing i can remember when trying to fix this, was that, when asking Vista to solve the problem it kept saying that i did not have a wireless device fitted to my PC. But i was using a wired connection from my PC to the router.