On Mon, Jun 6, 2011 at 7:47 PM, Henry Nestler <henry.ne@arcor.de> wrote:
Driver conectivity "Always Connected", ICS, bridging and ip adresses are
not your problem here.

This appears to be true. I went back and checked my old system and driver connectivity there is "Application Controlled". 
Ok. the TAP-Win32 driver is working, and rightly installed.
I think the network device was renamed by udev.

Please run "cat /proc/net/dev". If you see there eth1 or eth2, then read
the help in wiki to disable udev on the coLinux network adapter:

This solved the problem. Although my Debian image is a bit different than what was described. But I got the jist and made it work!

Thanks Henry! I really appreciate the help.