Try renaming or relocating from c:\windows Lmhost.*  Do a find file for host*.*  I had this same problem with Win 98, and the solution for me was deleting the LMhost file.  Just to be safe, you should move it from its current location or rename it.

>I have two networked PCs:
>AMD Athlon 1,2 Win XP
>AMD K62 500 Win 98
>DI 604 Router
>Comcast Cable
>
>The XP machine can surf the internet and sees the 98 machine on the network
>The 98 machine can see the XP machine and ping numerical addresses, but not
>names.
>For example: Ping 4.2.2.2 works fine.
>Ping Yahoo.com returns "Host Unknown.
>The 98 machine is connected to the 'net, but cannot resolve DNS names. All
>attempts to use IE 6.0 return a DNS error.
>I have uninstalled IE 6 and rturned to IE 5.5, to no avail. I also tried
>repairing IE 6, but no luck.
>I get the same error using a dial up connection.
>I spent considerable time on the telephone with the Dlink tech who thinks
>this is a problem with IE.


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