Airport keeps same IP address, won't change on dynamic ISP

I have an Airport extreme set up for my wireless network:
cable>modem>AE>wired computer
My ISP issues me a dynamic IP address, and my WAN changes each time I reset the modem, ***when the modem is connected directly to the computer***.
When the airport is plugged in as in the diagram above, it insists on keeping the same IP address, and it will not change, regardless of the IP address I get when the modem is direct-connected to the computer. In the airport utility I have it set to have my IP auto-assigned by my ISP, but it still keeps the same address. So when I try to manually set the IP address using the results from ipconfig when direct plugging the modem into the computer, I cannot connect to the internet (using an identical IP address, subnet mask, defaullt gateway, and DNS servers). How can I get my AE to follow a dynamic IP instead of keeping the same one in perpetuity?
There was a similar post about this on the Apple discussion boards from about 4 years ago, but the issue was never resolved. Your help is greatly appreciated. Thanks!
Peter

The information that you have provided indicates that your "modem" is actually a router or gateway, not a simple "bridge only" modem.
Do you have the make and model number handy?
You likely have a DSL service, so if you want the AirPort Extreme to work correctly with your modem,  you will likely need to configure the modem as a simple "bridge" and then setup the AirPort to provide the PPPoE log on service.
If you want the gateway to handle DHCP and NAT for your network, then configure the AirPort Extreme in Bridge Mode. As is stands, it sounds like you have a Double NAT error on your network.
AirPort Utility may ro may not tell you this. Open AirPort Utility - Click Manual Setup
Click directly on the word Status (2nd line) to see if there are any messages in the next window.

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