ShadowWX,
Did you say you connected it via lan *while* troubleshooting, meaning it was wifi previously? Thus, you've tried two separate network devices and both have the same response. Also, you say that the same router works fine with another computer. Sounds like a software issue. The only symptom is the computer isn't getting a new ip address from the router. if you do an ipconfig /all do you see an 169.254.x.x address?
Did you try this? netsh int ip reset c:\tcpipreset.log
This will reset the Winsock of windows xp and can restore functionality if there are any problems caused by adware or anything else.
Also, is there any Symantec, Norton, McAfee or other *firewall* software currently installed? If so, try disabling them.