Thanks to everyone for the suggestions. The mystery is solved.

Here are my troubleshooting steps:

1) I got a 10 BaseT hub and I plugged the cable modem and all the computers
in there.

2) I was not able to ping the default gateway. But I was able to ping any
computers from any other computers.


3) I examined hub; one of the ports, port 3, was showing unusual Link
activity. (The hub has 5 ports)

   I plugged in a network monitor and found out that the PC on port 3 was
sending 45 broadcast/seconds!

4) I examined the capture and found that the broadcasts were arp requests to
the default gateway!!!!

5) I then examined the arp cache of the PC and found the following:

63.162.86.1           00-00-00-00-00-00     invalid

6) I deleted the entry and created a static (permanent) arp entry for the
default gateway

7) I did another network capture: this time the PC was sending TCP traffic
out to random sites on the internet at a rate of

5,569 bytes per seconds!!!!

8) I went to Microsoft Website and searched their latest security bulletin
looking for symptoms of virus infection

9)I did not have the symptoms of increased CPU activity but when I did a
scan on my PC I found the file "root.exe" under d:\inetpub\wwwroot\

(This file belongs to the Code Red Virus)

10) I cleaned up and patched up the PC; everyone was then able to ping the
default gateway.

-----

What I learned: If I had moved to network capture analysis earlier in the
process I could have saved myself a lot of work!!!

What I still need to understand: how did the broadcast of the infected
machine prevent other machines to ping the default gateway on the switch ?

(please note that all the machines -- even the infected machine-- were able
to ping each other while on the switch)




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