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sindi keesan wrote:
>
> I have typed ifconfig eth0 192.168.1.2 and ping does not work

Either the ping is not getting to the target or there 
is nothing active at the target end to return the ping.

> route default gw 192.168.1.1 which did not help. 

There is no point doing that until ping works.

> dhcp - Sending discover (over and over)

dhcp is a substitute for ifconfig eth0 [address].  
You don't do both.

> ping www.grex.org - Unknown host.

You should ping a numerical address, not a hostname 
(unless the hostname is in /etc/hosts).

Cheers,
Steven