Are you using radius authentication? If you are that would explain why a user needs to be tied in to your domain to use the internet. Another explaination could be that you are using your own DNS servers (you must be since you are on a domain) and the DHCP server isn't configured properly and is not assigning these DNS servers to the computer.
Which setting did you change to open? I would be very careful doing something like this. Do you still need a key to access the network?
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I apologize for the black hole in my understanding here. So are you saying that you SHOULD need an ip address from the network to access the internet? I have been places where all I have to do is reset my TCP/IP to get a dynamic ip address and I can access the internet from their access point, even though my ip address is not from within their network block of ip addresses.
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A LAN will usually use a private network using the reserved IP ranges (192.168.x.x, 10.x.x.x or 172.[16-31].x.x). To use the internet on a private network the computer needs to be able to communicate with the gateway to the public internet. This gateway will have 2 ip addresses, one will be for your internal private network using the private range you set and one will be the public internet IP. To communicate with this gateway the computer will need to be on the same internal subnet as teh gateway. So any device on the lan that needs internet access needs to have an IP address with the same subnet as your gateway; this is usually done using a DHCP server.
Your network should have a DHCP server (wether it be directly on the router or on a different node on your network) just as your wifre's work network should have their own DHCP server. When your wife connects to either network she should get the proper IP address without having to do anything. Why this is not happening in this case would require a bit more troubleshooting.
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