Windows Vista Can't connect to integrated router - Quite advanced issue [SOLVED]

Hello, I am in dire need or my mother will have my head.
Windows Vista Home Basic operating system.

This desktop PC is what my mum heavily uses for the internet.
Ok, PLEASE bare with me as there is some background information prior to situation. I really need this to be fixed so hang in there for me! (Alternatively, skip to next bold text for the beginning of problem statement*)

Today I done a multitude of fixes, the PC was infected with multiple malware/adware issues which I removed using MalwareBytes anti malware then restarted, I also mass uninstalled a lot of programs (some varying in size and use (some adware)) then restarted again. The last things I did was try and remove AVG as I have uninstalled it but there are still files regarding AVG9.0 and the right click option to use AVG to scan things which does nothing at all. I have a removal tool but I was sorting that out later, another problem was java platform. I tried uninstalling some programs from the list (there were 3) but the last one which is the base platform install (java 7 update 7) would not uninstall, it'd go through and say it's uninstalled but in the end would still be there. So I got a Microsoft Install Removal Tool of some sort which worked like a beauty and removed it fine (AVG was not in the list of installed programs so I couldn't use this tool for that)....

But after that I figured i'd return and do some more cleaning up later (not sure if it's worth it but I mass deleted around 10gb worth of random photos. Word documents. Excel documents etc from downloads and other places). From here I restarted the computer and left it for others use (my mother).

internet worked fine through out the entire time while doing this (i think it stopped once I restarted)

I assumed it was working fine for a period of time. I was on Call of Duty on my PS3 (which is on another integrated router, not the one the PC in question connects to) but angered someone on the game I suppose and at first, I thought they were trying to DOS me as I was losing connection like it normally does when someone does that so my PSN (playstation network account) signed out.
From here, I jumped onto my laptop and booted it up waited for it for a second to then open C&A (A network diagnostic program/tool) where I tried to see if he was still sending me killer bytes(DOSing me) so I could manually block his IP address from my network but in the process of using the sniffer to poison the connection between my PS3 and multi-function device (once again NOT the one that the PC in question is connected to)
My mother came down and complained that the internet is down and that I've done something to the PC because all the other siblings can connect to it with their ipod/ipad etc. My internet was working fine at my side of the house so I immediately took her comment into consideration and figured i've broken something on the PC she uses.

*The broad problem is that we can't connect to the internet from this pc anymore or more so the integrated router at all (multi function device), there are multiple devices that can connect to this integrated router with no problem and have internet fine, I am on it at the moment with my laptop I use. We have another router set up at the other end of the house as an extension of our network.

The modem in question is relatively new. It is a BoB-lite from iinet. Our old one was a very old D-link (6+ years old) this new one set everything up and connected to our ISP for us but I tweaked it for the wifi access and kept the PSK-string the same so the computer my mum uses heavily will still work. It worked perfectly fine until recently tonight. (if you read the background information above you'll see what i've done before the problem occured)

To begin with i'll use some images to show you directly what I'm talking about:
This is what I was presented with when I arrived at the computer.
Figure 1
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Figure 2

Immediately I am confused, it talks about not being connected to 'ANY' networks, yet it mentions in the connection choice menu that I am connected to the integrated router however, with limited access...

So naturally I disconnected then connected to the network again however, it doesn't connect right away and takes longer then usual when it actually takes 3-4 seconds normally.
figure 3
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this results in a failure.
figure 4

But here's the funny part once again, it'll still mention that it's connected with limited access (refer to figure 2).
So I then try to diagnose the problem using the diagnostic help here is it's output:
Figure 5

The first solution is of no help, the second and third are a good point so I go in and check all the settings and to make sure things are on (IP4 & 6) and that it's all set to DHCP which it normally has always been:
Figure 7
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Figure 8
I notice that the network cable unplogged error for the local area connection is obviously not working, don't remember if it normally was or has to be but in my experience that is just your LAN ethernet connection if im correct? So I ignored it but even so checked to make sure the settings are all fine and they are the same as the following for our Belkin 54g Wireless USB network adapter:
Figure 9

The IP4 and IP6 are not connected? This is the device that I presume is what connects to the BATES2 network which says that it is connecting to it but they are not receiving packets from either end so I figured this is due to the IP issue.

Figure 10
Due to lack of images allowed to upload, i'll hopefully send another post with the rest of the images.