Problem connecting online while system says I am connected...

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This is my very first post so I hope I put this in the right place. I am a plug and play kind of person so when something goes wrong that does not get fixed by resetting something I lost and hope I could get some help here.

So to start I was playing an online game when all of a sudden I was disconnected from the internet. I live with 4 other people and their internet remained online and stable. When I asked to reset the modem and router they did and still my computer would not connect to the internet.

I checked to see if the cord was in and it was firmly connected. When my roommate turned off the modem my computer showed that the internet was off and when the modem was on the computer showed my internet was on but it was not sending or reciving anything. The modem shows confirms this by showing my light on but not blinking. Now I am posting here because my friend said it might be a driver issue and under futher investigation it might be a small part of a larger problem dealing with my bios.(will explain in a moment)

Some things that are odd about my computer:
- When its unable to connect to the internet, though it is connected to it, it runs a bit sluggish.

-When I right click My Computer and check out properties to see whats in my computer it shows;
AMD Hammer Family processor-
Model Unknown
2.21 Ghz
2.00 GB of RAM

-when I tried to update the driver for the Network adapters it did not see the one I downloaded as an upgrade and would not Complete its update if I manually chose it. It would show the little screen saying it was updating but never finished and I stopped it hours later after I started.
- now this may be something I did wrong but it seems odd to me.

- This is not the first this has happen. Usually I just reset the modem/router and it would work fine.

- Also it would be good to know that a friend made this computer for me about a year ago.

So I need to know, what could be the problem. What else would you guys need to know to better help me. Could it be a hardware issue or just a driver issue? Any help would be appreciated.

My computer specs are:

2.2 Ghz AMD
- Motherboard: MSI k8N NEO4 SLI
- Network adapter: NVIDIA nForce Networking Controller
- Video Card: BFG Tech BFGR78256GTXOC GeForce 7800GTX 256MB GDDR3 PCI Express x16 Video Card - Retail
- RAM: CORSAIR XMS 2GB (2 x 1GB) 184-Pin DDR SDRAM DDR 400 (PC 3200) Dual Channel Kit Desktop Memory Model TWINX2048-3200C2PT - Retail
 
It could be a faulty network adapter. Go into Device Manager and uninstall the NIC and then reboot. Also use the latest platform drivers from nVidia.
 
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