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It's possible you are getting a IP conflict, meaning both devices are grabbing the same address. The best way to clear this is to log into your router and look for the DHCP lease and remove both devices and try again.
belkin is famous for dropping its signal for no apparent reason, in my findings and dealings with several routers i have found "netgear" to be the best company not just for their products but for their customer service and tech support as well
If you connect the modem to the computer, does it go online ? If your computer is online through the modem, then the modem is working properly. Check the connections between the modem and the router. Reset the router for 30 seconds , unplug the power to the router and plug it back in. Wait for 1 minute and set up the router again manually. Click Here for more info
Go to Control Panel on your computer. Then Click on Network Connections. Look for Local Area connection. RIght click on it and click properties.
Look for Internet protocol TCP/IP. Select it and click Properties. Make sure that Obtain IP address automatically and Obtain DNS servers automatically.
Then, check the IP address of your computer by doing a right click on Local area connection again, but this time click on Status then click support. The IP address that your computer should have is in the range of 192.168.1.x
You may also check if the Ethernet light on your router is on for your computer's connection.
The problem may be in the router itself, prehaps a faulty product. But I am more inclined to think it is the outdated copy of windows 2000 which you use. In my view 2000 was second to Windows ME in terms of faults, errors, recoginizing hardware, and what have you. I would take the router back to walmart and test with a new one, but if that does not help, then it may be time for you to upgrade. Have you tried getting the ps3 online even without the computer having an active connection? Give that a shot and if for some reason the ps3 grabs the signal then it is time to give in for sure man. And watch the router when you try to connect the ps3 to see if it even attempts to grab the wireless connection, the wireless light will start blinking rapidly if it does.