RDP connection works but actual internet browsing not

Question

basically I got Windows 7 dedicated server and Remote Desktop Connection to it works, while actually browsing internet doesn't (pinging, internet explorer).

The details I've been given from host provider are:

IP Block:   108.61.xx.216/29
Usable Range:   108.61.xx.218 - 108.61.xx.222
Gateway:    108.61.xx.217
Subnet:         255.255.255.248

Local area network is not set to automatically obtain IP but rather use gateway/subnet provided above and IP: 108.61.xx.218

Does anyone have an idea why browsing doesn't work when RDP connection to IP: 108.61.xx.218 actually works??? This is really odd, when hovering over little monitor icon in taskbar it says Connected to Internet. Firewall is turned off. Link to IPv4 properties for LAN: http://img28.imageshack.us/img28/1324/configcopy.png

I appreciate any help.

Note: xx is used in order to disguise my real ip

Solution

I don't see any DNS servers entered into your IP settings. If you want to browse the interwebs, you'll need this. If your provider didn't provide any, you can use Google's: 8.8.8.8.