Problem with the Cisco Dialup Client 2.1

I am running a Cisco Dialup network client (v2.1) and when i have it installed by itself, it works fine. As soon as I install IE5 and reboot, it looks for a local IP address and gives me:

“Unable to determine the default network gateway for thismachine. If you use Microsoft Dialup Networking, you might have to manually create a “route add” statement if the access server is on a different subnet.”

Its not on a different subnet, IE 5 works fine, and connectivity to the modem bank is there and working.

I have tried proxy settings in IE, and the never use this connection for internet. As well, I have tried using the ws2bakup in windows to restore the winsock. No success

Please help ! 🙂 Im at a wits end!