well, since you are a pro you have undoubtably pinged everything and it must work and just neglected to mention. plus you have already checked out your dns and gateway settings and successfully pinged them but again figured we would assume all this.
so have you tried ipconfig /release /renew?
something is 'wrong' with tcpip still. what address does ipconfig say bad computer is at? maybe no good address so try release renew if dhcp. otherwise, sounds like improper gateway or dns settings on the bad machine. are they both set to use dhcp? if yes, are they both set for router as gateway?
if you can ping your isp's dns servers, then you are all set except dns is not working. either configure the bad machine manually for the dns servers specified by your isp (this is cheating but will work) or see if changing the gateway settings on bad box to internet router address works.