I have 2 seperate Windows 7 computers (one a laptop and one a desktop). That were showing incorrect network status icons.
The laptop had a wireless connection and was able to surf the internet and network with no problems yet it showed the bars with an asterix, which means not connected but it sees wireless networks to connect to.
The desktop had a wired connection that was functioning properly and was able to surf the internet and network yet it showed the wired icon with a red x, which mean no network cable plugged in.
Several Google searches and a few attempts that others had listed later I was still looking at the same wrong icons. I noticed on both machines a network adapter that said “Incoming Connections.” I don’t remember seeing that before and don’t know what it’s there for so I did the natural thing and deleted them. On both machines the network icons were now showing the correct status. I tried to find an explanation as to what that was but only found mention of VPN connections even though neither machine had any VPN connections setup on them. Weird fix to a wierd problem.