Operative word = "almost" bulletproof.

JBMac gave you good advice and very well may have hit the mark with his suggestion 
that your ISP is only allowing one IP address downstream of the modem, which would 
explain why the Vista computer works when directly wired to the modem.

With most ISPs, in order to feed more than one computer downstream of the modem, 
you need a router to perform NAT.

Good quality wired-only routers cost about the same as good quality wireless-G routers, 
so there's no logic in buying a wired-only router.  A good quality wireless-G router 
(Netgear WGR614) costs $39.99 at the major consumer electronics retailers.  You can 
still keep the wired computer connected via wire, and let the new lappy connect wirelessly.

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