Yes well, since the XP boxes work fine alone, it's not an XP problem either.
Look at the router DHCP settings. Make sure both the boxes are using ip addresses within the DHCP scope (or if using manual ip addresses on the computers, make sure they are in the same network and subnet).
Make sure that your gateway settings on the XP computers, point to the router.
Make sure that the computer account resides in the router. Make sure that all the settings currently residing on your computers is in the router. See if you can get one XP box on the Internet through the router... then work on the second.
It sounds as if the computers are properly setup, and that cable works fine but when the router is in place... that's the problem. Which probably means that it's either a bad router or that something is not properly setup in the router.
Something is missing from the router setup -- but I do not know enough about the model you have in order to point you in the right direction. Nor do I know enough about how cable works (I use DSL).
Call d-link back and tell them that the problem is either networking or the router setup. Tell them it works fine when one computer access the Internet directly through the modem. If they cannot help you, then have them escalate the call to someone who can. You should also try their corporate offices in California (949 area code according to their website) if you get no resolution from the free-technical support site.