Router went bad?

Do a complete reset of the router again. Before hooking it to the PC, do a "ifconfig /release" in DOS window to get rid of any old IP address. Also reboot the PC. Now hooking up the PC to the router and in DOS window do "ipconfig /renew". Do you get an IP address back like "192.168.X.X"? If it is, then your router is working and knows how to assign IP address. Also, not all the router's gateway is default to 192.168.0.1. You need to check with the user manual (I think Linksys is 192.168.1.1).