Airport says connected to basestation via PPoE but cannot connect

My ibook 700 connects to airport and internet connect says connected to base station via PPoE with very stong signal. Despite this when launch any internet requiring application Mail, Safari, TBK2 I get error message that it can't find server and Internet connect says can't find a PPoE sever. Have rebooted, reseated airport card and atenna, logged in under various users etc. Occasionally Safari will spontaneously connect and work fine. The base station has an iMac attached to it and it connects without a problem via the Airport Snow Base station via an ethernet cable. Other airport equipped ibooks connect without any issues.
I am running 10.3.9 on the ibook and have not recently updated any software.
Is this software, hardware, network setting etc problem.
Thanks for your help
Willy

It should be that the AirPort Base Station is connected to your DSP ISP using PPPoE, and the your iBook is connected to the Base Station using DHCP. Is this the way they are configured now?

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