There could be a number of reasons for the internet disconnection. 12007 means that IE cannot connect so it is trying at least.
If you aren't sure how to do any of the following then repost. I apologise if I have covered old ground from the previous forum too.
Did it suddenly stop working? Has it ever worked? Did this happen after problems with malware?
Do you have another browser installed? Often another one will connect with no problem
Is there a proxy set on Internet Explorer?
Have you checked the security level on your firewall?
Sometimes the add-ons on IE can cause problems so it might be an idea to switch them off and then if that works slowly add them on until the problem add-on is identified.
It is possible that malware is present. If nothing above works then perhaps it would be worth posting in our "Am I Infected" thread.
That's a lot to cover. Hope it's not too much...