WRT54G -- Cannot connect to internet

I just updated my router and gave my old WRT54G Ver 2.0 to a friend friend.   It was working on my home network with no problems.  
When we got it to his house, we are unable to connect to the Internet.  We have tried both the original install disk and configuring the router manually.
His ISP is Verizon DSL
He is running Win XP on his Dell desktop.
The Dell is hardwired to the WRT54G
He is able to connect to the Internet when directly connected to the Verizon provided modem.
When running Linksys install wizard, everything seems to going smoothly until we get to Step 7.   At that point we "Cannot connect to the Internet."
Any suggestions?  

well , PPPoE set up is authenticating the connection with the ISP....it is not related with the office or the home environment...
if u get 192.168.1.x as the internet ip add on the router's status page , then u need to change the router's ip add to 192.168.2.1....because if u do not change it there is a conflict in the ip add of the router and that on the modem....so the need to change the ip add of the router...
however , in that case the modem has the router features still enabled....so a better way is to bridge the modem....by doing that u stop the modem to act as a router and it will act only as a modem...and allow the linksys to handle the routing feature...

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