Hmmm.....The cookies disablement may be the reasons.

Successful functions:
Going into websites normally through the address bar
Click on different links within website (other then login/search buttons)
Logging into email and sending (sister tried it)

Unsuccessful:
Engine Search disablement
Logging into some forums
Logging into myspace/xanga
Downloading from megaupload.com

Looks like it's the cookies. Sorry if this may sound stupid, but how do enable it?

Oh and it looks like the computer was some adware on it in the C:\System Volume Information folder which is clearly unaccessible so I can't go in and manually delete the files myself. Access was denied by Trend Micro PC-cillin Internet Security in deleting the file. Weird though. I checked for viruses, and nothing came up.