DSL PC, lost connection to new via browsers, but has IP address and can ping

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I've been working on a friend's Win98SE PC. Shortly after getting DSL she installed something (unsure of what) that didn't allow her access to the net. I fixed it (somehow, but I believe by running Ad-Aware in safe mode). However, I was trying to fight viruses and spyware on her computer (there were plenty). I insatlled AVG (a German antivirus program) because I thought someone told me that it was good. I may have gotten confused and installed the wrong one (I've been told AV6 is good, too). Anyway, after installing AVG, we have been unable to connect to the net and view sites via IE or Avant. However, I can ping sites, tracert, and the computer does have an IP address. I've tried running various programs (Ad-Aware, Spybot, scanreg.exe /fix, and some others), but none seem to fix the problem. Whenever Spybot scans, it gets close to the end, but stops w/ an error in German at Z-Demon. Can anyone help? DSL Tech Support thought the same things I have (that it's not TCP/IP).
 
Try a non IE browser like Opera or Mozilla or Firefox.

Run the virus/adware scans in safe mode.

Run a not so common virus scanner like F-Prot in DOS mode.
 
Thanks, new solution

Thanks for your help. I finally convinced my friend to let me (and other friends and classmates of mine) to reinstall Windows for her (after a format). Thankfully my A+ instructor is allowing me to bring it in as a lab. We'll get it fixed.
 
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