Ok, this FINALLY just started working. No rhyme nor reason that I can see.

I manually assigned an IP of 192.168.0.2 to my Macbook along with subnet and router/gateway of 192.168.0.1. It then no longer said I could notget out to the net, but stil didn't work.

Then I cleared the manual setting and put it back on DHCP, renewed and it picked up the same addresses. Then when I applied the changes to the network properties it lost the IP address, then reconected to the ad-hoc network and re-obtaned them and it now seems to be working.

SUPER (SUPER) slowly, but working. Let's see how long it takes to check my email. Then how long it takes to download any mail.