Xbox 360 with wrt54gs V2 connection problems

Been trying to set this up for a wired connection and getting nowhere. Firmware version is 4.71.1. Reason I have the higher firmware is for the WPA security which I don't think the xbox supported firmware version provides. BTW, have four computers, two wired, two wireless, connecting through the router. If I connect the xbox directly to the DSL modem I get connected and sometimes (and I mean sometimes) get an IP but always fail on the DNS. ISP is verizon. Verizon says to call Xbox, Xbox gave up after their flow charts ran out of options. If I hook the cable through the router I get no connection and the connection light on the router blinks on and off very slowly. I've tried every setting in the book and cant get a connection. My thought is by going through the router the connections for the xbox can be negotiated by the router instead of the ISP, plus other systems can also connect. Any thoughts on what could be preventing the connection? Would a new router solve the problem? It is four or five years old, has never been a problem, but could it possibly be too old for an xbox 360? Any suggestions on a model that would work in this configuration? Thanks

Lowered the MTU to 1498 and didn't make a difference, at least not yet. What I have noticed on the router is the connection light for the xbox is in a very slow, cyclical on / off rotation. Where all of the other lights for connected systems are rapidly moving this one is not.

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