I have partitioned my hardrive into two sections. I have Windows XP operating system and Linux Ubuntu Hoery Hedgehog. My internet connection is set up through a 2 Wire PC port which connects to my PC as a USB Cable.
The only problem is when Linux is booted the USB internet connection fails to work at all. While when I load Windows it works just fine, but I did have to Install some .sys files to make it work. Does Linux support my USB DSL connection? or am I simply screwed?

Linux does support a usb dsl connection.
You must connect through a usb controller - i.e. something that connects to a usb pc card.

tell us the brand of the modem too
with the modem plugged in, reboot ubuntu, and show the output of dmesg | grep usb
with the modem plugged in, show us the output of lsusb.

(in other words, read the first thread in the hardware forum for hint on how to get help faster.)

I have a USB controller device. My USB device connects to the computer, The USB device is connected to the phoneline, and then through the phoneline to My Home Network. Ubuntu does not register my Pc Home Portal 1000S USB connection. I have it connected to the USB controller device but no Internet, or Network. How can I fix this problem. It is not connected to a modem of anykind. Why won't Internet Work. I try to go to Network devices but only two things are listed. Ethernet and Dial-up Modem. Help!

Huh? What? You just said that
1. the usb device connects to the computer
2. the computer connects to the phone line
3. the phone line connects to your home network

Presumably you have the PC connected to the usb adsl modem?
The modem connects to your dedicated adsl line.
The computer also connects to your home network.

So which do you mean?

A more common setup involving a home network is to have a nat router plugged into the ethernet switch, and the modem plugs into the nat router. In fact, these days it is getting hard to get a xdsl modem without some sort of router.

There are any number of usb-dsl howtos via google.
http://tldp.org/HOWTO/DSL-HOWTO/
... is just a start.
http://ubuntuforums.org/archive/index.php/t-26017.html
... is for ubuntu.

Perhaps you should tell us the brand of your modem? At least?

Output of
dmesg | grep usb
dmesg | grep USB
lsusb
lspci
lsmod | grep usb

It would be easier just to do one.

The 1000S is an ADSL modem/router in one package. AFAIK there are no linux drivers for this device so the easist solution would be to get an ethernet adapter and connect using a CAT 5 cable.

Hey Cameldriver - how did you get on?

Even if you do not use Ubuntu, the Ubuntu guides on the wiki can be very helpful. All you have to do is simple things such as substituting yum or your distros package manager instead of Apt or Synaptic.

https://wiki.ubuntu.com/UsbAdslModem

And here is some more.

More Ubuntu guides to help with USB DSL Modems.

And also check the HCL at this website.