Thanks for the reply 'Run Roanoke,' I've rebooted the computer many times since then. I did go back into the Wifi router and turn that off since you mentioned it, I am not using it. Though I should elaborate more, since you brought that up.
Here is more on my setup: I have a regular windows 7 PC (running ART 4.9) connected via Ethernet cable to a Belkin wireless router. A separate Ethernet cable going to the RFID Reader (Alien ALR 9800), both cables are plugged into LAN 1 and 4 respectively. I used the router as a go between for two reasons. One reason is that the router supports DHCP and so I could control the network settings. The other was because the reader was not showing up as being detected when connected directly to the PC over ethernet. Both art and Alien software do not have a problem picking up the reader over serial connector; however I still cannot read tags with either software.
Side note: I did try connecting everything via a regular switch, however the PC had trouble communicating with the reader over the switch for some reason. I could get a basic ping across using the router (and of course the switch did not provide a DHCP service). I will add that although the DHCP service is not required, it is desired. The Wi-fi is now disabled and I am seeing the same issue stated above. i.e I can connect (or so ART states) but the green indicator never lights up and tags are not being read. I attached additional photos of my router (and rfid reader) activity lights.