First run ImpulseReactorOptions.exe which is in your bin\demigod directory. See what ports you have it set to use.
(I changed mine to 6002-6200, but default probably works fine)
go Here...
http://www.portforward.com/help/portcheck.htm
and Download our PFPortCheck Program
Install it and run it.
Type a port number in the range specified by ImpulseReactorOptions.exe.
Click on the UDP radio button.
Click on "Check me"
If you get "Your port is OPEN!" on the right hand pane, then you're all configured right, and you can stop reaqding this post.
If not, then something is blocking connections on that port, either your router or a firewall.
There are a lot of different routers and firewalls so you need to work out what to do.
For port forwarding on routers, check out http://www.portforward.com
Demigod isnt there, but there are examples for other games which should be sufficient. Remeber demigod uses udp, and the port range you should already know.
The problem may also be your firewall. A simple test it to temporarily turn it off, and if that fixes it you need to open those ports on your firewall. Youll have to find out how to do this yourself.