Linksys E2000 Won't Connect

My sister gave me her E2000. I run the setup program, my laptop sees the router and it shows a strong signal. When I try to connect with it, it won't connect.

I have a cable modem. No DSL, no FIOS.
Thanks for staying with me. Please understand that I have absolutely no common sense when it comes to networking, so if you could spell everything out simply and completely, then that would be helpful. Don't assume that I know anything about anything.
You asked me for the IP address of my desktop computer and when I gave it to you, now you say that that was the address of the modem. I'm confused. Do the modem and the computer both have different IP addresses? If so, then how do I know which is which?
First of all, if I connect my non wireless capable (NIC card ethernet only) desktop to any ethernet port on the router and connect the modem to any other ethernet port on the router, then I'm able to connect to the internet. After awhile, I lose connectivity and have to shut down the computer and the modem to reset things. I think it has something to do with dynamic IP assignment with the cable modem. Can I eliminate this and assign a static address to my desktop? I know how to do this with TCP/IP.
If I remove the modem from the ethernet port and connect it to the "internet" port, as it SHOULD BE, then I can't connect to the internet.
I assume that the router is functioning as a hub when both devices are connected to ethernet ports, although not sure why the computer loses its IP address after awhile.
Of course, I have not yet spoken about my wireless capable laptop......................the whole reason for this exercise..............

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