D-Link 300T vs. Airport Express

I have a problem, that was posted by others, never answered, but listed as solved. Anyway, first my AEBS would not connect to internet though my D-Link 300T ADSL modem and it was partially helped by opening Airport admin utility; find your base station, then select configure, then network, then deselect the the "Distribute IP Adresses"
Now I have the following issue:
I can access the internet when wired to the Mac with the ethernet cable but the amber light flashes on the Airport Express and I can still connect to the internet.
If that was the end of it I'd be happy. But...
Every so often (maybe once two or three minutes) the Airport Express light turns steady green for a minute or so and during that time I can't connect to the internet.
I get the same IP Configuration error message "10.10.41.54 in use by 00:11:24:ee:05:7e, DHCP Server 192.168.1.1"
I click the ok button on the IP Configuration warning box and it disappears.
When the light starts flashing amber again after about a minute I can carry on surfing the web.
If I am prompted to use network diagnostics from Safari and the Airport light is steady green it is unable to solve my network problem.
If I am halfway through network diagnostics when the Airport starts flashing amber again network diagnostics rather sarcastically tells me that there doesn't appear to be a problem and I am connected to the internet.
Which indeed I am but wasn't a moment ago.
Has anyone found a way around this? I don't know why the Airport Express decides to light up green every so often when it's been told to act as a bridge (by disabling Nat & DHCP) between the DSL-300T and the Mac.

Hi Brian
I had exactly the same problem. It seems AirPort Express firmware v6.2 won't play ball with this modem - I got mine to work after downgrading the firmware to v6.1.1 - when the AX rebooted, it all worked fine.
I'm not sure whether the latest v6.3 firmware has resolved this incompatibility, but v6.1.1 definitely worked for me.
You can download it from here:
http://www.apple.com/support/downloads/airportexpressfirmware611formacosx.html
Good luck,
Scott

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