Issues Connecting to internet with new Airport Express

Running a Macbook pro 15" - 10.4.11
I just bought a brand new Airport Express a few days ago. I just recently got my internet service through Comcast restored and am eager to get a wireless network up so I can play Xbox Live again.
So issue is this: I plug the ethernet cable from the Cable modem into the airport, the light goes green. The computer is registering a strong signal, Network preferences says Airport is connected to my network. However, Safari keeps saying its not connected to the internet. When i run system diagnostics, I get a green light on Airport, Network settings, system settings, and ISP. But the light on Internet and Server stay red, and Diagnostics says it can't fix the problem and I need to contact my ISP. Comcast said they couldn't help, my connection was fine and they even refreshed it to no avail. When I plug my Ethernet cable directly into my Macbook pro, I get on the 'net no problem. I'm dumbfounded.
I'd appreciate any sage wisdom offered. Thanks!
p.s: Also, when I run a connection test on Xbox 360, it picks up my network, connects quickly, ISP confirms, but ultimately fails at DNS Server. Hmm.

bl4ckr4bbit, Welcome to the discussion area!
Most cable modems require that you power them off when you switch the Ethernet connection from one device to another. Until you reset the modem it will not communicate with the new device. When the modem is powered on it detects the new device and starts talking to it.
Some cable modems have a reset button on the back for this reset.
Some cable modems have a small internal battery which must be removed for this reset to occur.
Sometimes the cable modems must be unplugged several hours or even overnight to allow equipment back at the ISP to reset.
Did you power off the cable modem when switching the Ethernet connection?

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