Wow! No joy!
I think we narrowed it down to a problem with IE7. Unfortunately, he is running Vista, and you cannot uninstall IE7 on Vista. The reset option doesn't work completely, so it's hard to say exactly what the problem is.
Without a way to connect to the internet, we can't download Firefox as a troubleshooting tool either. However, he CAN ping yahoo.com and download and install updates, so I know that he is getting a valid IP and connection to the internet. But, when he tries to open a page in IE it just sits there, and does nothing.
We tried disabling the firewall, McAfee Security center, and Spy Sweeper, and uninstalling Google Desktop, none of that made a difference either.
I suggested that he take the laptop home, download Firefox on his home computer and transfer and install it on the laptop, and try again. Hopefully that will help.
Other than re-imaging the machine back to factory, (ALWAYS a last resort for me) I am out of ideas....
Sorry I couldn't be of more help Travis....