Connected, but no internet

I've reviewed other threads and can't find an answer, so here goes...
This happened out of nowhere and affects my laptop AND my son's, so I don't believe it is computer specific.
I have a Linksys WRT54G2 router. I get an excellent signal but no internet connection. I can ping the router with 0% packet loss; however, the traceroute test times out 95% of the time (sometimes, I can get one to go through, but only after I disconnect the power from the router and power back up.....1x only and back to time out). I have checked security settings and they are identical on the router and the laptop. I have released the DHCP and renewed. The adapter appears to be fine. Not sure what to do next.
Should I try uninstalling the network and reinstalling. Since both laptops are affected, could the router be defective (even though it is sending a signal)?

This forum must have a lot of people with problems and not a whole lot of solvers!

A quicklook suggests the 54G2 is a broadband router. Presumably you therefore have a modem or something connecting your router to the internet?

If you can ping the router correctly and you're getting good local network responses from both computers then the problem is probably not on the router. Though do make sure you've clicked "connect" to the internet on the router setup status page (if its there).

Really the issue is most likely to be with your modem. Suggest you restart this / check with the cable / phone company to make sure your line is okay.

Hope this helps
Sparks
best wireless router

You are correct that the router is hooked up to a modem; however, I should have added that there is a desktop connected to the modem (hardwire, not wireless) and we have internet access on it, so the modem is connected and operating fine.
Any other suggestions? I work for a software company and the consensus here is that the router is bad...even though it is sending out a signal. I'm on the sales side, so my technical skills are limited!