The windows icon usually means either you are set to run in Offline mode, file work offline is checked, or you are not connecting to the internet. Depending on how you access the internet, via telephone of lan connection, including dsl, you could have several problems.
Don't uninstall ie 5.0. Doing this could damage you os. If you could access the internet you could upgrade ie5.0 to ie5.5 sp1. If you haven't lost it on your hard drive you might be able to repair your version if it is damaged by rerunning the install and selecting repair. You do this from the contol panel add/remove programs, select ie5.0. If you installed from cd or windows 98 then you might get it from there. The other suggestion of proofing your os files with sfc if youhave windows98 are good also. Scandisk thorough might help as well. Run it in Safe mode.
Regards,
Bo