Airport Extreme wont pass internet through via ethernet OR wireless ...

I have an iMac in my house that can receive internet flawlessly when plugged directly into my ethernet jack in the wall (connected to my router). I can fwd (share) that through airport to my computers in my detached garage.
I have a spare AExtreme i plugged into the ethernet wall connector and then to the iMac and internet pages wouldn't load nor would wifi airport work when joined to that AE network.
My routers firmware is on the latest edition so i dont think that's it. This AE has been sitting in the box for months so maybe its software/firmware is out of date? how do i update AE firmware?
Any clues as to whats my issue?

I am running into the same problem.
My setup was working fine until a few days ago when I noticed the flashing amber.
My setup is/was:
iMac 2GHz Intel Core2Duo
OS X 10.5.2
Airport Extreme Gigabit
Comcast Cable: Modem to AE via ethernet - AE to iMac via Ethernet - AE wireless to powerbooks.
(This setup was working fine for the last 2 months when i bought the AE - I was not using Airport on the imac since i was connecting via ethernet.
Now using that setup, I get a green light on the AE, Network status via System Pref all seem OK, but cannot connect.
Right now, I can only connect directly via ethernet to my modem. I turned on the iMac Airport, it recognized the AE and downloaded a firmware update. But this did not change the situation. I did do a reset a couple of times, as well as just left the AE off all day.
Not sure what to do next. I am currently using internet sharing sparingly in the house via iMac airport.
HELP

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