Airport no longer working after firmware update

Before i get to my question, i think that it is necessary to give a bit of background as to why i have set my network up the way i have.
I recently moved in with my girlfriend and brought my broadband package with me as i would have to pay a fee to cancel my contract within the contract period.
This would be all well and good except that in the new location, the service provider can only supply broadband via an ADSL phone line (provided by a seperate telephone company) furthermore they (Virgin Media - i'm gonna name names) provide a cheap USB only modem - which in turn is only compatible with PPC Macs.
Fine for me, but not so great for my girlfriend who has an Intel Mac Mini and not so great for my new Airport Extreme which of course requires a modem with an ethernet connection.
Bearing in mind that it's just after Christmas and i can't afford to just run out and buy an ethernet modem or change my ISP - i thought that i would try something out.
With the USB modem connected to my old PPC G4 i then connected the ethernet cable (that i had connecting our two Macs allowing them to share the internet connection) - from my G4 to the WAN port on the Airport...
Now i'm a real networking newbie so i was a little suprised when suddenly and effortlessly i had created a wireless network that the Mac Mini and our iPod Touches could see and use. I set up security etc and all was well and good...for two days.
Then Airport received a firmware update and now it doesn't work and resetting the Airport doesn't help.
So now i have to get my hands dirty and like i say, i know jack about networks or the terminology.
With this configuration - and obviously we know that it can work (somehow!)
should i be in bridge mode or sharing a single IP address? and just how am i connecting to the internet. Static IP address/DHCP - PPPoE? I know what these abbreviations stand for but i don't know what they mean.
In the course of 'playing around' with the settings i have seen a message saying that Airport has an invalid I.P. address - why is it invalid and is that only because of something that i have changed or is that the route of the problem?
All the machines can see each other and the only clue i can provide is this log extract.
Jan 19 01:05:31 Severity:5 Initialized (firmware 7.2.1).
Jan 19 01:05:34 Severity:5 Deauthenticating with station ff:ff:ff:ff:ff:ff (reserved 3).
Jan 19 01:05:34 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:05:34 Severity:5 Rotated TKIP group key.
Jan 19 01:05:42 Severity:5 (WAN) link state is Up.
Jan 19 01:05:49 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:05:54 Severity:5 Associated with station 00:1d:4f:e3:87:17
Jan 19 01:05:54 Severity:5 Installed unicast CCMP key for supplicant 00:1d:4f:e3:87:17
Jan 19 01:06:04 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:06:19 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:06:19 Severity:5 Connection accepted from fe80::203:93ff:fe77:a4b0%vlan1/49186.
Jan 19 01:06:34 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:06:49 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:07:04 Severity:3 No Address for NTP server time.apple.com.
Jan 19 01:07:08 Severity:5 Connection accepted from fe80::203:93ff:fe77:a4b0%vlan1/49187.
Jan 19 01:07:09 Severity:5 Configuration updated.
Jan 19 01:07:09 Severity:5 unloading current configuration.
Jan 19 01:07:17 Severity:5 Deauthenticating with station
...and so on.
I'm hoping that some networking guru is reading this and can provide me with a few pointers.
Can anyone help? I've been struggling with this for days now.
Thanks in advance.
Steve.

Your setup is convoluted, but it should work. A few comments:
1. The base station should be configured to get an IP address using DHCP, which it will get from your PPC which (with internet connection sharing turned on) is now acting as a DHCP server.
2. The base station should be configured in bridge mode, since your PPC (with intenet connection sharing turned on) is now acting as a router.
3. I suggest you should turn off the network firewall on the PPC as long as your are running this sort of setup. Not ideal, but it will prevent all sorts of connectivity problems between the internet and everything downstream of your PPC's ethernet port.

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