I'm sure you've already figure this out, but I thought I would post this to save someone else the frustration I went through with this. It is true, the router should be set up with a DHCP, not as PPoE. However, you will have to change the IP address of the router before you can actually connect to the internet. Both the router and modem have an IP address of 192.168.0.1, which causes a conflict, which means you don't get to the internet. I changed my router IP address to 192.168.5.1 and it worked magic. You can change it by going to Setup > Network Settings and changing the Router IP address. Just remember to log in to the router to change settings, etc you'll now have to go to http://192.168.5.1. Hope that helps.