An address starting with 169.254 is what is called an APIPA address, it means you failed to pull an address.
Your router should use DHCP not PPPoE if a DHCP PC has ever pulled an IP from the modem.
You may need to reboot the modem or re-provision it with your ISP in order for a new device to pull an IP from it successfully.
you don't want your modem and your router on the same network, try changing the LAN of your router to 192.168.1.1 instead of 192.168.0.1.
You should not be able to manage the router unless you have it as a gateway for your traffic or can resolve it's address via ARP, in other words either you pull a valid IP from it or manually configure an address on it's LAN Net to manage it.