The computer I am now currently on was just recently fixed. There was a hardware problem, but I ASSUME they corrected it. I'm not sure if that has something to do with the connection problems I'm having at this moment, but it might. I figured it's relevant. 

Anyway, I TRY to connect to my wireless connection, and in doing so, it will say it's connected, but the icon at the lower right corner shows the small x. I can browse for a few minutes, but after it won't let me for a few minutes. Usually I backup a few pages, and then it works. I had to turn off my proxy settings and the firewall for the internet to even work on FireFox and Google Chrome. IE still won't work.

I'm not sure if it's a ROUTER problem, or the actual laptop itself. I can connect perfectly fine on my Iphone and other DEVICES (Wi, Xbox 360,..). I just don't know.

 Help would be greatly APPRECIATED!

I'm using Windows Xp
Inspiron 8600
AVG is installed, along with Ccleaner and Malware/Spyware detectors. Can you confirm that your wired connection works flawlessly on all browsers? The red X might point a disconnection from wireless network.  I don't see any relevance of using proxy settings for a home network setup.Yes, on my desktop which is connected through the modem works fine. It's just the laptops wireless connection that acts strange. It will say its not connected, but I can still get on the Internet. It will then say that it's lost the connection. Check first if you have a secured wifi network. Try changing your router/modem channel and check for any wireless interference on your room or location.