Maybe this will help explain what is happening and a cure..
I know it relates to NT but it should help.
http://support.microsoft.com/default.aspx?scid=KB;en-us;q185198
What does it look like on workstation 10.1.1.2?
Do you have 10.1.1.3/24 listed as one of the gateways?
What does it look like on machine with the address 192.168.1.77/24? (It should have a default gateway of
192.168.1.1.)
Try doing a repair on IE by going to Control panel and Add Remove Programs. When you click to uninstall it will ask you if you want to repair it. Select repair and try that.
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