As it turns out, restoring the back-up on the computer probably wasn't necessary. When all was said and done, the same problem existed as before. As a last resort, Mike unplugged and replugged something on the device that networks us together, and everything was back to normal. Yay! It was a day-long process, but we're back online this morning. Phew!
The morning was spent on slow-stitching, and I finished what was left in my current hooping.