It says I'm Connected to Router but I'm Not

this afternoon i'm having problems accessing the internet on my MBP 10.5.4. i don't think the problem is with my router because my old PB G4 10.3.9 has been working fine on the network all day (at the same time as the MBP is down).
my internet access keeps dropping. pages not loading, mail not connecting etc. but the airport icon says i'm still connected to my router and everything looks ok in the network prefs. sometimes if i turn airport off and back on it works for a minute before dropping again.
i've tried resetting PRAM, repaired permissions, deleted all airport/internet keychains, removed all locations and airport passwords and started again but it hasn't improved things. when i started up in safe mode for a half hour or so the connection seemed fine and didn't drop, now i'm back with a regular startup i'm having the problem again. everything has worked fine for months before this.
one time the connection dropped while i was doing a traceroute and it said "Host is down" after turning airport off and on again it continued ok.
in case it matters, i have a sky broadband connection and a sky / sagem F@ST2504 router.
what can i do ?
thanks !

Alexandre wrote:
And you cannot connect computer to computer AND run wireless internet access at the same time, although you may run the internet THROUGH another computer. (computer 1 connected wirelessly and receiving internet / computer 2 connects to computer 1 and picks up internet through it).
This has never been a problem, unless i'm misunderstanding you - i have been able to connect to my old PB over the network wirelessly (through "shared" in a finder window) and have both computers independently using the internet through the wireless router.
As your connection drops at the same time as the internet, could it even be that the airport card (inside) is faulty?
it wouldn't surprise me as the disk drive has been faulty on this MBP since i bought it, but i think today's network problem is more likely some kind of conflict or preference problem as it is working fine continuously following a safe boot & only occurring during a normal boot.
i've tried various channels on the router and at the moment have ended up back at "auto".
thanks for all your ideas alexandre. hopefully someone else will chip in if i've exhausted you !

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