PDANET connection issue

Good morning, Board.
I am using PDANET app to connect iPhone to the computer via WIFI, it shows "chain link" connect in the wifi symbol in the instruments panel.
I am trying to browse using google chrome and safari, but it refuses to work. However, I do have Skype connection and able to place phone calls. This makes no sense.

I tried to connect via USP tether, but the PDA laptop app tells me that phone is not attached.

I would really appreciate any ideas about it