heres my setup now:
IP Address: 192.168.1.3 -> router IP
Subnet Mask: 255.255.255.0
Default Gateway: 192.168.1.254
DHCP: Server
DHCP CLient Range: 192.168.1.10 - 200
Static DHCP: Enabled
802.1d Spanning Tree: Disabled
Clone MAC Address: 000000000000
still it says local only and no internet connections, im using vista home premium BTW