Internet Connection - Your Apple wireless device does not have a valid IP.

I just bought an Apple TimeCapsule and set it up normally, following instructions to my Arris cable network on the Videotron provider here in Quebec, Canada. The TimeCapsule did appear as a wireless device on my MacBook Pro (after updating the AirPort software from the provided CD - as was instructed). I went through the whole installation process to obtain at the end this error:
Internet Connection - Your Apple wireless device does not have a valid IP.
The only provided instructions were to check the cable and then contact your Internet provider. Well it seems clear to me that if I contact my provider and say that the internet connection works fine directly on my computer, also fine through my "normal" wireless router but not with my new TimeCapsule, I won't get much of a response.
After a lot of research, a friend indicated the solution in my case.
You have to really reset the cable modem to convince it to start giving out IPs again.
To do this:
1. Unplug your TimeCapsule (possibly you might have to reset to factory defaults - see the documentation)
2. Unplug your cable modem
3. Reset your cable modem by pressing the reset button with a pen (or something) for several seconds.
4. Plug your cable modem back in and let it reboot/restart - until the lights are back on.
5. Plug in your TimeCapsule
Everything should now work and you can restart your AirPort set-up on your Mac.
Good luck!

My ISP is AOL.  The service is DSL via a broadband modem.  Somewhere during the setup process there appears to be a communicatiosn issue between the Airport Extreme Base Station and the DSL modem.  When I hook the DSL modem directly to my iMac I can connect to the internet without any issues. 
I tried the factory reset and the DSL modem reboot process described in other posts and seemed very close to success...until the internet setup step.  That is where this issue first presented itself.

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