Hard time GETTING a DLink router TO WORK

Hi,

I have a BSNL Dataone DSL connection.
I use the BSNL supplied Huawei Smartax MT600 modem which has just one LAN port.
I can either connect my PC or Laptop uisng PPPoE.

I have a DLink DI-524 router. I have a wireless network set up with the router, my pc and laptop.

Now I am connected to the router (wirelessly as well as with wires).
The router is 192.168.0.1
My PC and laptop are configured to have static IP addresses 192.168.0.11 and 192.168.0.21 respectively.
Subnet mask is 255.255.255.0
Default gateway is 192.168.0.1(my router).

DNS entries: one is my router and the other is the Dataone dns.

If I connect to my router configuration page, it shows that I am connected to the internet.
I can ping IP address on the internet.
I can ping www.google.com and other websites.
I can connect to ymessenger and Skype messenger, but cannot see any data in the messenger. However my skpe lets me search and add contacts.

If I type in any URL in the browser (I have tried IE, firefox, safari, opera), it keeps saying opening page and never opens the webpage.

I have turned off the firewall and the Antivirus.

The same problem happens with my linksys router also.

Any suggestions?

Thanks,

Siddhartha