Internet connection sharing doesn't work

I have 2 node network, sharing a Creative modem blaster
external. The locl system can connect and surf. The remote
can connect, ping a site, do a tracert, but can't browse
to a site using the http:// format. If I enter the ip
address, I can usually get to where I want to go. I'm
pretty sure it's a dns problem ( duh!) but I've tried
everything I can think of, including ipconfig/flushdns on
the local system, seting the isp dns in the remote nic ip
properties, setting it on the local nic, and several other
crazy things.

This one has me stumped. Can ANYONE help? BTW, it's a
fresh install of xp pro.