WRT160N....Local only

I just purchased a WRT160N Wireless router and i still cant connect to the internet. When i do the set up, i says that it cannot find my internet connection and i can connect local only. There is something blocking my router and my modem. I am running Vista 64 bit on a laptop with a DSL connection from AT&T. I have my phone line connected to a modem and then to my router then to my computer.
When i use my wired d link router, everything works fine.  I have tried resetting the settings on the router twice and nothing changes. If anyone could help me it would be greatly appreciated. Thanks

Out of curiousity, which version do each of you have? Mine is V2, which has been noted to have problems. I got mine by the luck (or lack thereof) of the draw. You don't know what version you get until you get it home and open the box.
For me, I can't even get the router set up. I get most of the way through installation with the disc and then it tells me that there was an error and to start over completely.
I tried setting it up through the ip, but no luck there either. 
It should not be this complicated.

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