If you've gotten on a few times, then it's probably either your ISP or the remote servers. I get this occasionally too, and I'm on cable with a similar config as you.
When it hangs at the directlplay test, click the back button at "89 secs to go" (or whatever), wait a few seconds, then attempt to login again. Rinse, repeat. I usually get in after the 2nd or 3rd try.
Good luck.