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I suspect the firewall refuses to allow the computer to connect to the modem (duh!). Perhaps you should take a look at the default rules - they might be set to reject all internet access...
Or... perhaps it's because NIS uses some sort of "bridge" between the computer and the "network card" (usb port). Something might be wrong there. Take a look at the network connections, see if you find anything different.
Or... ditch NIS, get zonealarm, and do away with the crap.
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