Help please - can't connect to internet

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I'm a bit of a novice when it comes to networks, routers etc, but I've been asked to assist my in-laws with an issue.

They've recently upgraded from an old (non-wifi) ADSL modem to a Thompson TG585v8, supplied by Pipex. Their desktop is an ancient AMD XP1900 running XP SP3. It connected perfectly well to the net using their old modem, but doesn't want to play ball with the new one.

I've tested the Thompson with my laptop, and it connects without any issue at all - so the issue with with the desktop setup.

I've clicked on the network symbol in the tray(?) (bottom right corner of the screen) and it brings up the Local Area Connection Status. In the General tab the Status stays on "Aquiring network address". Activity states 5 packets sent and 7 received. It just hangs there.

On the support tab the Address Type is "Invalid IP Address". The IP Address is 0.0.0.0, as is the Subnet Mask.

So, the question is, should the IP address be changed to solve the problem, and if so, how?

Thanks! :D
 
Further to the last, on opening Internet Explorer the 'cannot display webpage' screen appears. I've gone in to Internet Options; Tools; Connections; LAN settings and put in the address 192.168.1.254 as per the Thompson instructions - no result.

My Father-in-law has spent considerable time on the phone to Pipex trying to sort it out, also to no avail.
 
The old modem was USB. I've unplgged and reconnected the ethernet cable, the lights adjacent to the port are flashing.

I'm sure the issue is software-related, I just don't know how to identify it.
 
Thank you
- it's wired ethernet
- there are no other wired devices, but currently two laptops and a smartphone using the wireless
- the laptops and smartphone work fine wirelessly, and I've plugged my laptop in to the ethernet, which worked fine straight off. The desktop with issues does not have a wireless card
- the desktop previously worked fine with the ADSL USB modem, but has not been used with ethernet before
- the desktop runs Win XP Service Pack 3
 
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I've just turned the machine back on to get that info and a Windows - System Error dialogue box stating "There is an IP address conflict with another system on the network".

Under Network Connections we have:

Broadband:
(Name)Broadband Connection (Status) Disconnected, Firewalled
(Name)Pipex (Status) Disconnected, Firewalled

Both of the above are dial-up I think, and the device is listed as WAN Miniport (PPPOE)

We also have

LAN or High Speed Internet:
(Name) Local Area Connection (Status) Aquiring Network Address

This is the Ethernet connection I think, and the device is NVIDIA nForce MCP Networking Adaptor
 
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