It is possible for power surges to go over Cat5 cable. In fact, in there's Power over Ethernet, which does pretty much just that. So it's possible your NIC got zapped and will need to be replaced.
But to test this, try setting up a simple share on your bother's system, and see if you can connect to it over the LAN and transfer some test file. If you can, then you would seem to have some other problem, but you've at least shown that your NIC is functioning properly.
I've shared the net with my brother's computer for quite a while now, and just recently set our two computers up on a network, with his computer being the host.
Last night a small thunderstorm knocked out my internet connection (TimeWarner's legendary "stability" -_-). My brother turned his computer (the host) off, but I was still using mine, so I left it on. When the cable modem showed activity again after about an hour, I attempted to get back on the Internet, but had no connection. My brother's computer, on the other hand, worked perfectly (once I started it up).
I've checked almost everything I could think of since then, from a simple restart, to reinstalling my ethernet drivers, and I'm still unable to connect. All devices are working, the modem works, the router works, my brother is accessing the net just fine, but my computer can't get a connection at all. Any suggestions?

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