that could be deceptive do me a favor and open up 2 terminals, in one run ping 192.168.0.1, this will continue on ad nauseam, to kill it when you are done testing you need to press Ctrl+C (or is it Command+C, its 0800 you will have to forgive me this one). In the second terminal run the sudo arp -d -a, I expect you will see the pings start responding (and the net up) pretty quick when that command is run.
Do you have 2 Ethernet cards, I notice your Ethernet adapter is listed as en1 (I believe they start at en0, but again its 0800)? If so could you disable the one not connected to this router and see if your connection still fails.