Connecting ATV Ethernet thru Verizon cable box ethernet?

We just moved into our house this past weekend. The previous owners had the place wired for ethernet in all places except in the built-in cabinets that form the main entertainment area (component cables rather than HDMI as well!). We are going to work on that.
One of the things I really wanted to do was connect the Apple TV via ethernet. Without a dedicated ethernet line I guess I'm looking for a work-around. We have a Verizon cable box that has an ethernet port. For grins I connected the ATV to the verizon box. Under the ATV, it shows that the ATV is connected with numbers, etc. But, when I try to do anything online nothing seems to work. I tried to connect to Itunes and that did not work.
Is what I'm trying to do even possible? If so, do I need to do something so that the devices are communicating over the wired network? I've never owned a wired home before so just figuring this out.
Thanks.

Capaho,
Thanks for the response. I'm a little confused.
I have the Verizon router that they have put in the basement where all of the wiring comes together. This is distributing the wireless signal but I prefer to have it connected via ethernet.
I also have my time capsule/router but I've left that unplugged until I sort out this new home network.
The ATV is in the den connected to the A/V receiver with the rest of the components. No internet jack in the cabinet.
The ATV can communicate wirelessly to itunes to retrieve data stored on itunes. What I wanted to do was buy a separate hard drive, put all the media on it, and point the ATV to that device over the wired network.
By turning on "internet sharing" is that better than just connecting ATV to the imac wirelessly now?
Sorry for the questions but I'm a newbie to the wired house and trying to figure it all out.

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dpm,
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Connecting ATV Ethernet thru Verizon cable box ethernet?

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