impalaman, your router setting is wrong. your router setting should be your router's IP address.
for example if your ip address is 192.168.1.101
then your router should be 192.168.1.1
then DNS should be set to your pc's ip address, in this case, 192.168.1.101
essentially your ps3 setting should look like this
192.168.1.102 <--- ps3's ip address
255.255.255.0
192.168.1.1
192.168.1.101 <--- pc's ip address
hope this helps.