Know what's throwing me the worst?
You're showing (on the first IPCONFIG /all feedback) 192.168.0.xxx instead of 192.168.1.xxx, & I believe DHCP has to use the 192.168.1.xxx format!
That 192.168.0.xxx comes from Winproxy. I redid the install wizard and it puts that adress in the Internal IP box. I can't change it

ALSO: Have you taken a CLOSE look at your DHCP server entries in that IPCONFIG /all feedback readout from the 2k box?
It's showing 192.168.0.1 as your DHCP server, & is that IP's machine in fact acting as a DHCP/DNS resolving machine? If not, I can see that messing it up trying to get to the web.
So that entry should be change to whatever my IP adress is for that box?
You can add your ISP's DNS servernames to this section of the registry on that 2k box & see if it helps here:
HKEY_LOCAL_MACHINE\SYSTEM\CurrentControlSet\Services\Tcpip\Parameters
In the NameServer &/or DHCPNameServer entries, like your other boxes show it... and maybe that will help. Open REGEDIT.exe in XP, see that area on the XP box & make the same NameServer & DHCPNameServer entries on the 2k box in the same place in 2k box too in the registry for a test. May in itself, fix it up, but I am not sure. This may extend beyond that into the interfaces area below the parameters area in the registry, but worth a test.
ALSO: You can do it on that 2k box in its TcpIP properties thru the GUI as well if you don't like registry hacking!
I did that, here's the results!

That clarktanguay.com info was what I enter into the DNS setup on Winproxy when they asked me a domain name for the DNS. So that is looking good!
BUT now I have a problem. I did the change and took the screenshot, before I redid the install wizard. After doing the wizard I had to put the numbers back, but the registry doesn't save them anymore!! I rebooted and they are gone! The 192.168.0.1 is back there! I've changed it 5 times already, and every time it comes back!!! I'll try rebooting the server first, then changing it in the 2k client machine!
Have you considered using STATIC IP addresses on your LAN boxes instead of DHCP, like 10.xxx.xxx.xxx instead? 10.x.x.x & I think 172..x.x.x are not outward broadcasteable to the net either.
(The 10.x.x.x I am SURE is not... it could be 170.x.x.x or 172.x.x.x on the second one, but that also is not either for security purposes & your ICS/WinProxy could provide the net to you, via proxy, as it does anyhow to those nodes with those IP addresses)
Well after the install wizard, winproxy give a text file with what to do with the client PC. They change the file with the new numbers everytime the wizard is done. In the first part they say to put "Obtain an IP adress automatically" same for the DNS. If not I can do this:
If you prefer to configure your computers manually
please follow these instructions:
* On each of your client PC's. From the desktop,
right click on "Network Neighborhood"
* Click on "Properties"
* In the "Configuration" tab, click once on
"TCP/IP -> {your Ethernet card}", and then
click on "Properties".
* Specify an IP addresses from 192.168.0.1 through
192.168.0.255, excluding 192.168.0.1
* Specify a subnet mask of 255.255.255.0.
* Set the DNS server to 192.168.0.1.
* Set the GATEWAY to 192.168.0.1. *** IMPORTANT ***
* Give each computer a unique name on your network.
* Select an appropriate domain name that will not
conflict with names used on the Internet.
* Specify the same domain name in the WinProxy
configuration by selecting File->Properties in
the WinProxy menu, selecting the "Protocols" tab
and pressing "DNS Setup" to specify your domain name.
* If you are using other internal DNS servers, not
recognized by WinProxy, then those should
also be added to the DNS list on your client computers.
* Leave all other TCP/IP settings blank, unless your
particular situation requires specific values.
So I went into the TCp/IP protocol properties for the USB connection, and put those numbers in. I didn't have a Alternate DNS server number but the rest of the fields were full! But after I rebooted I didn't have any web access on the 2k machine

So that didn't work!
So now I'm shutting down the 2k machine, rebooting the XP one, and I'll change the number in the registry! Hope everything works this time lol If it works I'll just edit this post!!!