Its a power issue. With the Pi, its always a power issue. I had the same problem. Apparently, the ethernet port can be responsible for half the power draw of the Pi. Even if your power supply lets the Pi boot without networking, it may not supply enough voltage to keep it going with the ethernet plugged in.
I tried 5 power supplies before getting the one from Adafruit which finally worked:
http://www.adafruit.com/products/501
Other people on the forums suggested this one from Amazon (may be cheaper than the Adafruit model by the time you factor in shipping):
http://www.amazon.com/gp/product/B004WX48J0/?tag=ib2-20
The problem could also be in the USB cable that ou use to connect to the power supply. Some cheaper/longer cables have a voltage drop big enough to cause issues with the Pi. I had to try a couple of different ones