Ok... I don't know what the heck I did, but my Internet connection is now functioning again!
The last the thing I recalled doing was re-installing the operating system, letting the system configure the NIC on the mobo for DHCP, adding 127.0.0.1 as a DNS and another IP address that appeared out of the blue while I was beating the hell out of the configuration (still trying to figure that one out).
I am still baffled why I could not get a static address to work (it worked in Suse 9.1)