To follow-up on my issues for everyone who was kind enough to make a suggestion, as well as those who might be searching for a similar problem:
Yes, my PowerBook hard drive failed, and yes, I had to replace it. Fortunately I had backups. This gave me a chance, however, to test the setup with a completely fresh operating system.
The result was: No Change. Internet connection was sporadic, and I could not connect to other computers in the local network by name.
My eventual solution: I replaced both the D-Link router and the D-Link wireless extender with two Airport Express units. Now everything works perfectly.
I can't remember if you said you had 2 wireless routers but I found that both my routers were transmitting on the same channel. I think that was a problem and since changing one of the channels they work like a team now. So, suspect hardware but then suspect the hardware settings too.
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