Jeff,
Thank you for your reply. It took me few hours but I managed to solve it myself. I had badly configured internet sharing on my PC, nothing bad with the conduit. Again, thanks for your reply,
regards,
Adam
Also, my /etc/network/interfaces looks like this:
auto eth0
address 192.168.2.1
netmask 255.255.255.0
gateway 192.168.2.2