Yes, definitely put SElinux back in enforcing mode after that test.
If I'm reading your original post correctly:
$ wget http://localhost <--- works
$ telnet localhost 80
GET / HTTP/1.1
Hostname: your_hostname
(works)
(go to a different host)
$ telnet name_of_first_host 80
GET / HTTP/1.1
Hostname: your_hostname
(works)
If the last telnet from a different host works, then we know that the first hosts firewall at the very least allows traffic to port 80 from _some_ hosts. Maybe not the one that you are eventually trying via firefox or MSIE from.
So, is the host that the telnet works from on the local network, but the host that you're trying Firefox from on some other network? Do the web browsers on that host go through a proxy or a filter, that telnet might bypass? Generally speaking, I would:
1) on a remote host:
ping the webserver by IP
traceroute to the webserver by IP
telnet to the webserver on port 80 by IP
see if I can resolve the name of the webserver (dig, host, nslookup)
ping, traceroute, and telnet using the name
Ping may be disabled, so failing that may not be a big deal.
Traceroute might show you that the traffic is passing through some sort of external firewall.
telnet checks to see if you can reach the webserver process.
2) assuming all these look reasonable, then I would start suspecting browser settings, proxies, and so forth. If they don't look reasonable, then I would start suspecting firewall settings, either on the webserver itself, or on an external firewall between my test host and the webserver. I would also check:
/etc/hosts.allow
/etc/hosts.deny
on the webserver.
Best of luck!