I have the same problem. In my case it has NOTHING to do with any 3rd party apps, the only internet security program i have installed (other than windows defender and windows firewall which are not enabled) is Avast Internet Security.
Once I upgraded to 2014, all web traffic is being blocked. When I try to access a website on my browser (any browser, IE, Chrome, Firefox, etc) it just hangs like the person who posted this thread says. Also, any programs that try to access the internet can't get a connection either. I'm also unable to even access my router admin page. Once I disable Avast shields, then everything works normally.
I uninstalled and downloaded and did a clean install of 2014 and it still doesn't work. I've uninstalled again and installed an old version 7.0.1456 that I have an install file for. 7.0.1456 works perfect, no issues, so it's only 2014 that broke something.
What do we do to get Avast to recognize this as a bug and fix it? 2014 is completely unusable for me as what sense is having the software if you have to disable it in order to access the internet?