Intel nic card not working correctly

I recently bought a PC with Windows 7 x64bit. All was working fine and then last night there was a windows update to my machine KB980408 and KB975496, and since then I cannot get network connectivity. I have re-installed the drivers (Onboard Intel NIC), enabled disabled, rebooted etc.
I can ping my loopback address, so it appears the protocol stack is loaded.
But the network Icon in the bottom left says no connection. When I run the troubleshooter it says there is an issue with the driver, but according to device manager there is not.
Also McAfee Virus scanner stopped working at the same time.

I have gone back to previous restore points and still no luck.

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