Macbook airport pppoe connecting

Hi,
I've had a problem with my Macbook Pro Airport utility ever since my Apple Time Capsule router dropped internet yesterday.  The router issue resolved itself after a modem restart, and the internet works fine now.  All other computers and devices can access the internet fine, and in fact my Macbook Pro is connected to the network and can access the internet just fine (I'm typing this on it now).
However, ever since, the little wifi indicator in my menu bar has had the radiating black lines like it's still searching for the network, and my wifi network has an arrow besides its name instead of the connection strength.  When I click on the arrow I see a pop up window with some options, and the greyed out message 'pppoe connecting'.  Google searching this message seems to suggest that if pppoe isn't connected, I shouldn't have working internet, so I'm confused.
There doesn't seem to be any actual problem, everything is working fine, except that the constantly flashing lines in the menu bar are annoying me and they don't normally do that!
Any suggestions as to what's going on would be appreciated.

Ok, you should just need to enter 192.168.1.245 into your browser's address window, and you should be greeted with a request for a username & password. Leave the username blank and enter "admin" (without the quote marks) for the password...should get you in.
Do you have your WAP's User Guide handy? No problem if you don't, it would just make it easier to see the same screens when I try to explain what values need to set.
Assuming that you are now at the WAP's Setup/Network Setup page: (ref: UG, page 38)
Device Name: The default name is fine.
Configuration Type: Automatic Configuration - DHCP
The other values on this page (IP Address, Subnet Mask, etc.) are automatically assigned.
Going to the Setup/AP Mode tab: (ref: UG, page 40)
Enable (select) Access point (default)
Going to the Wireless tab: (ref: UG, page 43)
Mode: Mixed
Network Name (SSID): This is what you'll see when you look for a network when you are accessing it via AirPort. You can use the default name, or I suggest make it something unique that means something to you...to distinguish it from the others that may be near you at your dorm.
Channel: The default is 6. If you have others near you using wireless, they most likely will be defaulted to 6 as well. To prevent interference, pick another, like 11, or your favorite number, from the available range.
SSID Broadcast: This allow the name of you network to be "broadcast" so you (& other) can find it quickly. Unless you want to share your connection, and to make it more secure, you should disable this feature. You can still find it in AirPort by selecting other and typing in the name. Your call.
Ok, that's quite a bit for now. If you need to keep your wireless secure, I can take you thru the steps for using encryption.

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