WRT54G2 won't get an IP

Recently my mom started complaining that she couldn't get online wirelessly. At first it was intermittent but in the last two weeks it has gone out completely. She was able to connect tot he router but no internet. When I checked it out I found the following:
1) Optimum modem shows link activity and internet activity.
2) Router shows internet connection but status shows no IP addy
3) Laptop has internet access when directly connected to the modem but nothing through router.
So I tried a reset of the router and this did nothing. I also tried to update the firmware but again still no IP address. Has anyone else seen anything like this where the router light indicates there is an internet connection but it doesn't get an IP? I am at a loss to what I can try.

There should be a card/pamphlet that details these steps found in this link included with the router, and these steps can be found in the manual on the CD that was included (if one was included) with the router. It helps to print out the steps detailed in the link below.
How do I access the router’s web-based setup page?
http://linksys.custhelp.com/cgi-bin/linksys.cfg/php/enduser/std_adp.php?p_faqid=3676
Note: Make sure to used a wired computer to access and make changes to the router. Using wireless can cause problems when making changes (especially to the wireless settings). Also you may have to perform a Hard Reset (hold the reset button in for 30 or more seconds) to reset the router back to the default settings (including the passwords). Also, updating the router to the latest firmware via the Linksys/Cisco support site is recommended. When updating the firmware make sure you download the right version number for your router. If performing a firmware upgrade, make sure to do a hard reset afterwards and reconfigure the router.

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