Airport Express - cant connect to internet via PPPoE

Hi guys/girls,
I am having trouble getting internet access with my newly bought Airport Express 802.11n Wi-Fi. I was connected to the internet via an Arcor DSL-speed modem 200 (Arcor is my provider here in Germany), using the PPPoE protocol, and an Ethernet cable.
I have set up Airport Express (AX) to use PPPoE, and managed to get a connection to the internet for about 5 seconds (even up to 20 secs once - YAY!)... before the connection drops again. AX tries continuously to connect to the internet, as if it is stuck in a loop, but never manages to make the connection last. The trouble I am experiencing look very much similar to what is described on the threads below from about 2 years ago. There it is suggested that the Firmware could be the problem. Or is it my provider?
In German: http://www.macuser.de/forum/f15/arcor-speed-modem-178771/
In English: http://discussions.apple.com/thread.jspa?messageID=1481024
Since both posts are from 2 years ago, and I would have expected the problem to be solved. Apparently not. Any suggestions?
cheers

Yes - I was still old-school: plugging in my Ethernet DSL cable into my laptop every time, using PPPoE as that is what my internet provider requires.
I have now indeed attached AX to my DSL modem via the Ethernet cable. Following your suggestion,I set-up a network location where PPPoE is disabled. But unfortunately no effect... After 5-15 secs (even up to 35 secs this time!) i get the message that my Ethernet is unplugged. Which it obviously is not, and I even cant blame the cat for it!
Two problems keep being listed:
Ethernet unplugged
PPPoE server
Could the problem be with my internet provider?

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