well, we took the long way ... but when we figured it out, it was extremely simple: if you are using Shrew VPN (don't use, if you haven't yet ...), go to wireless configuration settings, click properties and uncheck 'Shrew filter', confirm and save ... and that's it ...
if you want to run Shrew VPN client again ... you will have to turn 'Shrew filter' back again ... and as long as your computer is on, also internet should be working ... do it everytime you turn your computer on ... (uncheking and cheking Shrew filter in wireless configuration settings)
also, do not experiment with Shrew settings as it will get you into even more irecoverable troubles ... but that's another story
Shrew VPN sucks !!!
(Win 7, 64 bit, I7)