Airport Extreme only connects to one computer at a time

We just got a new modem and now we can no longer go online with more than one wireless computer at a time, although we have set up a network and it has always worked just fine with the previous modem.
The error message we are getting on a Mac trying to connect while another Mac is online is: (orange light) "Airport is connected to the network...does not have an IP address, cannot connect to the internet".
Another message says that the IP address is already in use by the other computer, so no access.
How do we get more than one Mac to go online at the same time, when there is this IP address problem?

The modem is a Zyxell/Zyzell/Zycell (spelling subject to change!) P600R-D1, our provider is Earthlink (formerly Mindspring). I honestly have no idea if it's a combination router/modem, I don't recall if I was the one who set it up or not as it's been several years.
Also, something I forgot to mention (as this problem has been intermittent for some time) is that occasionally our AirPort Base Station will "overload" for lack of a better word and simply drop all connections to one, several, or all of the computers. During these times the number of bars shown (if the computer was previously connected) drops to one below full, whereas computers who were not corrected cannot see the station at all. AirPort Admin Utility is unable to see them as well, the station simply seems to not exist anymore! Unplugging the power cord always fixes the issue, but this problem usually occurs when I'm intentionally using a lot of bandwidth (downloading large files from torrents, playing intensive multiplayer games on the internet) which is why I mention it here, as it might be important.
I'll try poking around the modem configuration page and see what I can find out about it, and I appreciate your help thus far! Hopefully I can get this resolved and cure this headache!

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