On our Windows 7 (and maybe Vista) computers, there is a small overlay on the network notifications in the system tray. It's a yellow triangle with an exclamation point in it. When mousing over this I can see information about the current network connections that contains the phrase "No internet access". This warning is just plain untrue - I'm using such a connection to type this very post. I don't see the same warning at home.
As I think about how this might be implemented, it almost has to be that the computer actually goes out and makes a request of some internet resource provided by Microsoft to see if it responds. Could untangle be blocking this request? If so, does anyone know details of how to allow it?