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Hi! thank you for the response! To answer your questions:
files download to the downloads folder via cable, but not with wi-fi. (same as all folder attempts)
the router is issuing private addresses with 192.168.1.80
MAC Addy’s are different for wifi nic and mobo based NIC
the U-Verse router keeps IP’s alive for 1day.
with wi-fi I can ping google, yahoo, microsoft, etc..
I’m able to browse via wifi to any site. I was using OpenDNS, but switched it to U-Verse’s DNS servers instead, no change, not that that would do anything.

Tonite I’m removing the PCI wifi card and am going to use a USB wifi to see if that fixes anything. otherwise I’m going to pull the longest cat5 cable ever.

I am using Microsoft Security Essentials and Microsoft Firewall as my defense.

Well last night, I don’t know what I did or didn’t do, but I was able to download files, namely win7 SP1. it took 20minutes, all was fine. this morning I turned the desktop on and I am having the exact same problem.
the ONLY thing I did last nite was reset 2 folders from Hidden to unHidden. I have been trying to save files under a folder I created called: Stuff
the other folder was downloads.

I checked the attributes on these folders and they are set to ReadOnly and when I turn the attribute off, it apparently doesn’t stick and it’s back to read only. I created another folder called files located at c:Files and it set the attributes to -r for read only. I can’t turn it off either.

I know it seems odd for the router to dish the same IP address, but my 2-Wire U-Verse router doesn’t seem to stray from this.
I can browse to the exact same page on my laptop wirelessly and download the file. I can do the same on this dekstop if connected via cable.

I checked the network connection type, and I made double sure it was set to HOME Network.
Is there another option I should be looking for?

Thank you all so much for the responses! I have my work cut out for me in trying these Linux flavors/distro’s.

I’m a very much Linux newbie with very little experience.

I have not chosen a Linux yet, I have not been able to dedicate any time to my project.
I have now begun to start re-investigating again.

the main goal is size. Unfortunately all I have to work with is 512mb CF cards. higher capacities are in the works, but only as the 512 cards die out. so far only 1 card has died, and I’m pretty impressed so far too.

I am hoping with all the great advice, I’ll find a small footprint linux.
Mainly just PuTTY and Firefox need to be run as well as a PDF reader, and probably word/excel readers. We don’t need a lot of programs, mainly PuTTY will be the main program in use.
a friend thinks he found a macro type program (similar to the pc program Autohotkey).
XP embedded is a small footprint and fits pretty nicely in 300mb of the CF card. With the other programs that are used, it’s another 100mb.
AFter slimmings things down I have 90mb free on the card.
I am hoping to find a Linux that will be as small as xp embedded. From there we can develop some of programs of our own to run and hope we can get the stability and speed. the xp-e is decent for what it’s running on. But.. I’m always looking for better, and to me, the future isn’t gonna be windows.. linux is looking way to appealing!

My 2 cents worth..
wire the whole house with Cat5e or cat6. Simultaneously, run another cable run for telephone. Also I’d definetely put in Coax as well. Digital grade coax using digital grade couplers and jacks.
I don’t see a need for fiber.
in your entertainment/TV room, wire up for surround sound, whether or not you’re going to have surround sound, never hurt to have it. OR what I did for a friend who wasn’t ready yet…
I installed conduit in the walls where rear speaker could be. up in the attic crawlspace, there were 4 conduits, depending on where the speakers would be mounted, near ceiling or ground level. We took a picture of the wall before the sheetrock went up, and measured precisely where the holes would be. So when he wants to wire it, the conduit is in the attic, and is easy to run and install, and a very small hole can be poked through and the wires can easily be pulled out.
Also we have conduit for various locations throughout the room for HDMI cable, coax and cat-5/6. Just depends on what medium he wants to go with, shove the cable thru and done!

I have AT&T U-Verse, it runs from a telephone jack, to their U-verse Router, from there the u-verse dvr box can receive a signal from either network cat5 wire OR coax. Cat5 cabling provides the best possible picture for HD channels. Coax looks good, but you can tell the difference when you compare.
Reason for still running coax.. just because it’ll never go away. You may someday want to get rid of verizon and go with AT&T if it’s offered in your area. you’ll do better off of the cat5 vs. the coax.
For streaming video, I’m not a fan of wireless in this case, I’d rather have a cable that won’t hiccup on me. I have an Asus O!Player, i stream video from other devices, and the cat-5 provides the best medium for me to do this. unfortunately it had no coax connector at all on it, it’s HDMI or composite cable only.