Airport no longer sharing internet

I have been using the airport extreme (802.11n) for several years, with few problems. Now it seems that it is only sharing the wireless connection from my modem to one computer at a time, rebooting the modem will allow any OTHER (or the same) computer to connect.
(I think it is something to do with the modem, but I am kind of hoping there is a known fix for this, on the AE)
Thanks for any help

I now believe that it is the AE, as I now have my mbp connected via ethernet and am able to connect my itouch via wireless. If i try and connect anything else via wireless it doesn't have an internet connection, but is on the network.
Also just noticed the orange light is flashing and in the airport util it says there are no DNS servers. Is this related?

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