{RESOLVED}Try Again Message at Startup

After fixing a problem that prevented me from using Windows Update I downloaded the current Critical Updates package and DirectX 8.1. Now I'm experiencing a problem I had several years ago ... and I can't remember how I fixed it. I'm hoping you can help me.
At start up, and occasionally thereafter, I get this annoying message (see attachment) that says, "No connection to the internet is currently available..." I click "Try Again" and IE "discovers" my DSL connection and everything is fine.
Please, how can I fix this [again]?
I'm using Win98se

 

Hi rds33,
Im glad you got the other problem taken care of. Im not sure about DSL but my cable had problems connecting. I called and they set me up with a new IP address and it works great now they said my old address wasnt working for me

 

Could be your machine is trying to dial up a connection. This won't work with DSL. Go to Internet Options and choose the connection tab...make sure "never dial up a connection" is checked. I had same problem
after dowloading "upgrades"!

 

After the Critical Updates install I had to reset "Never dial ..." and my LAN [DSL] settings. After several reboots I continued to get the "No connection ..." message, so I did a Repair on IE and that seems to have eliminated the problem. I've rebooted four times now and things appear to be stable.
-rds33