Questions:

1. Okay so, we are ruling out NIS 2005[meaning you uninstalled it and the problem is still there]?

2. What Netgear Model number are you using?

3. I'm assuming you've checked the cables from the Dsl Modem to the Netgear router[maybe take a spare cable and see if that helps]?

4. When calling your DSL provider ask them how to reset your DSL Modem [I can just unplug mine] this sometimes clears issues..

5. Are we still working with one workstation or two because you mentioned in your orginal post there are two workstations that are not networked together?

Sorry for so many questions.. trying to get a picture on how your network is setup.