Applications can't find internet

I just bought a refurbished Dimension 3000, Windows XP SP2, and am having problems hooking it up to my Verizon DSL connection.  My old computer works fine on it, so I assume the DSL connection is good. 

 

All I did was to unplug the Ethernet cable from my old system and plugged it into my new one (I only have a single computer connected to my DSL modem, and am using PPPoE).  Then I created a new network connection for this DSL  line using the standard XP wizard.   This puts an icon on my desktop for the connection, and when I double-click on it, the familiar messages about registering and authenticating my computer on the Verizon network appear, and a bubble comes up saying that my computer is connected. 

 

So far so good.  But then when I try to use the internet by starting my IE browser, it can't connect to any websites - it always says page not found etc - thats Google, Dell, amazon, anything.  If I start up my AOL software, it says it detects that i have a broadband connection, but it can't connect to AOL - it stops at step 2, Looking for TCP/IP. 

 

Any ideas what is wrong?  The only other thing that seems odd on the new computer is that the local area connection (which seems to be my NIC) says it has limited or no connectivity.

 

Any help is appreciated!

 

Thanks

Annie