WinXP home, XP Pro, 98 Networking ICS

[ProfessorU]

Here's my issue

1 DSL connection attached to WindowsXP home (external IP)

1 router connected to that XP Home machine (internal IP 198.162.0.1)
and to XP Professional (198.162.0.40)
and to Windows 98 (198.162.0.74)

File sharing works across all systems
Internet Connection Sharing does not
Internet access is available from WidowsXP home

I'm using ICS built-in to Windows XP home, with the Windows firewall turned off. I'm running ZoneAlarm 3.7 on all machines. All 3 are different IPs, same subnet, and they are all in the 'trusted' zone of ZoneAlarm. ZoneAlarm does not log any blocked packets when the XP Pro or 98 machines attempt to access the internet.

I have tried unistalling and reinstalling TCP/IP, closing ZoneAlarm completely, and using alternate protocols.

A Ping command from the 'server' (winXP Home) will go anywhere local or internet just fine.

Ping from either win98 or XP Pro
1) to localhost: ok
2) to server's NetBios name: ok
3) to 192.168.0.1 (gateway): ok
4) to each other: ok
5) to Autoconfiguration IP Address: ok
6) to the server's gateway (68.75.67.9): ok !
7) to 63.236.73.204: fail (that's vDr's www IP)

then I ran ping ftp.netscape.com on win98 and it got a DNS for it (205.188.212.121) but failed to reach it with a ping. Then from the command prompt: ftp ftp.netscape.com and successfully logged in!!!
Internet explorer 6.0 on both is configured to use 192.168.0.1 port 80 as an HTTP proxy.

ANY ideas at this point would be appreciated. I've attached the results of ipconfig /all from the server to this post for reference.

[ProfessorU]

^^bump^^
I upgraded the host computer from Home to XP professional... but the symptoms remain the same.