Airport Express: can't connect to internet via adsl modem

I have an old Airport Express which has worked fine in the past and a new ADSL internet account which works fine when I connect to it via PPoE Built-in-Ethernet. But despite following all the instructions in the Airport Setup Assistant I can't get Airport to work with the new modem (it works fine for AirTunes though). The thing is I don't really get how it could work with the new modem seeing as the Airport Setup Assistant doesn't ask me at any point what the username or password is for the new account.
I guess I'm missing something obvious here. Does anyone have any ideas what it is?

Thanks again, I tried that but it didn't work either. Going back to basics, it might help if I tried to set out what I'm trying to take in a bit more detail:
1. Having just moved house I have a new ADSL line and modem installed by the phone company and a new ISP that has provided me with a username and a password. Using those I have no trouble getting internet via an ethernet cable connecting my iBook and the Modem.
2. I plug the ethernet cable into my AX and then plug the AX into the wall.
3. Then I follow the AX set up assistant guide for setting up a new base station.
4. I click the box for DSL or Cable Modem. I don't click the box for Router
5. This is the step I'm most unsure about. Because it is the default option I click the box for DSL or Cable modem ... or over Ethernet with an IP address assigned automatically using DHCP." I do not tick "I do not use DHCP". But I don't really know what that means.
6. AX tells me that it is configured as follows: TCP/IP: using DHCP and IP Address: Provided automatically.
7. When I open Safari it tells me that I'm not connected to the internet. Clicking the network diagnistics box gives me green lights for everything up to and including ISP but not for the internet.
Someone here mentioned that I might have to reconfigure my modem as a router. Is there anything to that?
Thanks again for your help.

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