All you actually had to do and I know this is a late late reply but its just in the case of letting you know how easy it really was to fix this issue what you should have done was turn the internet system icon off and back on that's what fixed this issue for me....
Red X on system tray connection icon even though I am connected to the Internet. OS is Win 7 64 bit, how do I correct this.
Red X in system tray connection icon...have reset router, restarted computer...how to correct this problem
Windows for home | Previous Windows versions | Internet and connectivity
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Try this. It worked for me.
I finally removed the security from my network and the network status now shows me as connected. The red X is gone. It seems that Windows 7 does not support WPA2-PSK. I cannot imagine that is the case. Any ideas as to why, as installed on my PC, it does not have an option for WPA2-PSK? As I said, the hardware is supported and previously worked with XP.
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Anonymous
2012-08-05T06:45:26+00:00 Yup - BIOS update did the exact same thing on my desktop machine - more of a nuisance than anything affecting functionality or connectivity. Running Windows 7 Pro, 64 bit and had just updated Gigabyte MA-785GM-US 2H board to latest BIOS version when I noticed the red X on the network connectivity icon in the taskbar. The link to below was what did the trick:
http://www.howtogeek.com/howto/windows-vista/clean-up-past-notification-icons-in-windows-vista/
Thanks. The devil's in the details.
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Anonymous
2012-07-31T12:38:08+00:00 This doesn't work for me. I still have the red X and can't get Lync to connect because it thinks I have no connection. If I run a VPN it works.
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Anonymous
2012-07-24T04:54:37+00:00 Thanks!! This worked for me.