ping, but no http, ftp, etc.

[Nitestick]

that IP is an APIPA address. It's what Windows will address itself when a DHCP server fails to issue an IP. It's meant to be used to plug two or more computers together without DHCP servers (ie connecting via a crossover cable).

Check to make sure that your computer has the DHCP client service running.
Try rebooting the router.

just what i was going to say. you could also try setting a static IP and manually configuring the internet gateway to the router's IP.