I'm not sure where the extra networks are coming from but have you tried disabling the Bluetooth connection on the desktop in Device Manager? Other than that the ipconfig looks fine.
Windows 7 often gets confused on which connection it should use when there are more than one active adaptors.
It also could be that the network stack is somehow messed up from the DNS failure. If you are still having problems save the file below, unzip and run the file until your machine reboots.
Resetting the router is another option.