That is really strange. I'm not familiar with the nuances of INet, but everything "looks" correct from what I can tell.
I'm just throwing out guesses at this point, but I wonder if it might be something with your main router? Usually gateway and DNS/nameserver are both 192.168.1.1, but I came across an issue recently where a new modem/router provided by an ISP wouldn't allow itself to be used as a nameserver. I had to manually add the external nameserver IPs as reported by the unit to my TCP/IP config. Do you get any different results with the 8.8.8.8 that utri007 suggested?