Airport Extreme base station and Netgear DG834 router won't talk

Hi all,
I just bought a netgear DG834 adsl2+ modem router. However, I haven't managed to get my AEBS to talk to it (the LEDs on the right doesn't light up when trying).
Connecting to internet via an ethernet cable to the router works; connecting to the AEBS (with Airport Admin Utility for instance) works too. BUT, I cannot connect to the net wirelessly.
I suspect I should modify the router's firewall or something to that effect... but I'm no network expert. I have tried toggling the DHCP settings and IP distribution on and off, etc.
There is a slight possibility that the AEBS may be faulty, although the LEDs all light up even if once only.
Please, can anyone help me out?
Thanks in advance,
Simon
PowerBook G4, 1.25GHz   Mac OS X (10.4.10)  
PowerBook G4   Mac OS X (10.4.10)  

The AEBS gets given an IP address (192.254.xxx.xxx), which I cannot use for reserving on the netgear router (illegal address, it tells me - it should be 192.168.0.3 or something shouldn't it?)
The 169.254.x.x address is typically seen if a DHCP (Dynamic Host Configuration Protocol) server is not found, a valid and unique address in the range of 169.254.0.0 to 169.254.254.255 inclusive and a subnet mask of 255.255.0.0 will be assigned.
I suggest that you perform a "hard reset" on the AEBS, and then, set it up as a bridge with the instructions I provided earlier.
Also, should I do anything about the RIP direction and/or version on the router? It's currently set to Direction: both, version: 1
Let me get a chance to download and read the User's Guide for your Netgear DG834. Which version do you have: v2 or v3, or newer? Since the AEBS will be in bridge mode, RIP, which allows a router to exchange routing info with other router, should not be important.

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