Strange connection issues...

DLink firmwares/board apparantly have two reset modes: A soft reset which is issued when you just push the reset switch and a hard reset where you have to do some more stuff (like unplug, replug, etc.).

Google for it ("dlink hard reset"), the instructions may vary from model to model. It's worth a try - but keep in mind that this kills all your settings.

Jam it back in, in the dark.

This looks like a problem with the routing tables to me.

EDIT: Did you already try to ping the PS3 from your desktop system when both are connected to the router?

I would first make sure that the switching circuit of the router works, so that you have at least an internal network. If that works you can do some checks why the internal network isn't bridged to the external (the internet) one.

Most amazing jew boots

Why so complicated? For starters just disable DHCP and assign static IPs to all network clients. It's just 2 systems so no big problem.

Do some pinging test and afterwards start enabling all the bling-bling settings...

This thing is sticky, and I don't like it. I don't appreciate it.

You can answer this question yourself: You state that directly connecting a client to the modem (and not through the router) is working, so the problem should be with the router or the clients itself.

I am a dolphin, do you want me on your body?