I would also try booting into safe mode with networking and test a download or 2 that way. If you could successfully download windows updates, it doesn't sound like its a hardware issue. It might be a setting in your router, or some software/firewall problem. Have you installed any antivirus or spyware programs since you reformatted? Are you on SP2? (and is it blocking the download with the information bar?) ... thinking cap broke so I'm out of ideas and questions